What happened

Shares of Tower International (NYSE:TOWR), a manufacturer of structural metal components and assemblies for the automotive industry, are up nearly 14% as of 4 p.m. EDT Monday, after the company released strong third-quarter results.

So what

The auto parts manufacturer generated $524.6 million in revenue during the third quarter, a 14% increase from the prior year and better than analysts' estimates calling for $518 million. Tower International posted a better-than-expected profit as well, with adjusted earnings checking in at $1.08 per share, compared to analysts' estimates calling for only $0.97 per share. The strong results were enough to push the stock higher from its recent 52-week lows:

TOWR Chart

TOWR data by YCharts.

Said CEO Jim Gouin, in a press release:

Tower delivered solid financial results in the third quarter, growing revenue organically well in excess of the overall auto market and expanding Adjusted EBITDA margins. Revenue for the quarter increased 14 percent as Tower continues to benefit from the secular trends of outsourcing and a continued production mix shift from cars to trucks and SUVs. Tower's North American revenue continued to significantly outpace the market, growing by 20 percent from a year ago.

Robots manufacturing a vehicle frame

Image source: Getty Images.

Now what

Management has put together a strong year; it paid down $50 million of term loan debt, and continued to return value to shareholders by increasing its quarterly dividend to $0.13 per share. But the biggest takeaway, especially as new-vehicle sales in the U.S. plateau, is that its North American revenue continues to climb significantly more than the market. In fact, through the first nine months of 2018, the company's North America revenue increased 17% compared to the prior year -- while industry production declined by 1%. That's exactly what investors needed to hear in the near term.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.