S&P: Tower Automotive unaffected

Standard & Poor's said the lower third-quarter earnings guidance announced Tuesday by Tower Automotive Inc. (B+/negative/--) has no immediate impact on the firm's credit ratings. Tower now expects a third-quarter earning per share loss of 39 cents to 43 cents ($22.5 million to $25 million loss), down from a loss of 18 cents to 22 cents ($10.4 million to $12.8 million loss).

S&P said the company cited a combination of lower production volumes on key platforms in North America and continued steel cost increases as the main factors contributing to the increased loss.

With major model launches either completed or nearing completion, S&P said it expects that earnings and cash generation should strengthen starting in the fourth quarter.

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