Horizon Global Corp., a towing and trailer equipment manufacturer, reported decreased sales during the third quarter.
The company’s net sales decreased 24% in the third quarter of 2022 from the same period in 2021 to $149 million.
“In August, we announced that we would be undertaking a broad review of strategic alternatives, with the ultimate objective being to maximize shareholder value,” said Terry Gohl, Horizon Global’s president and CEO. “This could result in a sale of some or all of the company. This process is ongoing, and we will provide an update when appropriate.”
Due to market conditions, Horizon Global said the company experienced continued softness in its higher margin non-OE sales. Some of Horizon Global’s large customers also had elevated inventory levels, the company said.
“The resulting volume underperformance and unfavorable sales mix significantly impacted our margins for the quarter,” he said. “This is a disappointing result, but we are not standing still.”
Gohl said despite market headwinds, the company is taking aggressive action toward profitable growth.
The New York Stock Exchange (NYSE) notified Horizon on Nov. 11 the company is no longer in compliance because the average closing price of Horizon’s common stock was less than $1 per share over a consecutive 30 trading-day period.
According to the NYSE, “the company can regain compliance at any time within the six-month cure period following receipt of the notice, if, on the last trading day of any calendar month during the cure period, the company’s common stock has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month.”
Horizon said it will notify the NYSE of its intent to cure the stock price deficiency and return to compliance.