Unfavorable foreign currency rates and distributor consolidation led to a drop in net sales for Horizon Global during the second quarter of 2015.
Horizon Global, the new parent company of Cequent, reported an 11.1 percent dip in the quarter ending June 30, compared to 2014. The numbers were partially offset by eCommerce and retail growth, according to the report.
“Our financial results reflect the spin-off of Horizon Global, including incremental stand-alone company costs and expense allocations for certain functions provided by TriMas,” said A. Mark Zeffiro, president and chief executive officer of Horizon Global.
Operating profit decreased 64.2 percent to $5.4 million, from $15 million in the second quarter of 2014. Excluding special items, operating profit decreased 37.8 percent to $10.2 million, from $16.5 million in the second quarter 2014. The operating margin was 6.5 percent.
“Our focus remains on our three priorities for value creation,” Zeffiro said. “Clearly, the first one is margin improvement, and we announced a number of actions geared toward profitability improvement. Second, our anticipated increase in cash flow would assist in reducing debt. And last, we expect increased revenues to be driven by our eCommerce platform, entrance into new markets and growth of our automotive original equipment business.”