Tower International, Inc. Business Report FY ended Dec. 2015

Financial Overview

(in million USD)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Rate of change (%) Factors
Net Sales 1,955.7 2,067.8 (5.4) 1)
Operating Income 79.0 80.8 (2.2) -

1) Net Sales
-The Company’s sales during the fiscal year ended December 31, 2015 decreased by 5.4% to USD 1,955.7 million. Despite increased sales volumes in both the Company’s Americas segment and International segment, sales decreased due to the negative impact of currency rate exchanges and by unfavorable pricing.


-In July 2015, the Company acquired 100% of the shares of Herrajes y Acabados Metalicos, S.A. de C.V. (Hamsa) for a total purchase price of approximately USD 26.1 million, thus expanding its Mexican operations. Hamsa provides stamped parts for the automotive industry.


-The Company announced plans to investigate the potential sale of Tower Europe, the Company’s European operations. Tower Europe is headquartered in Germany, and has a developed manufacturing footprint with factories in Germany, Slovakia, Poland, Czech Republic, Italy, and Belgium. It supplies parts to Porsche, Mercedes, Volvo, Volkswagen, Fiat, BMW, and Skoda. Revenue for Tower Europe is projected at approximately USD 650 million for full year 2015. The Company anticipates that a decision to sell or retain its European Operations will be made by late first quarter of 2016. (From a press release on November 10, 2015)

-In December 2015, the Company completed the divestitures of its entire equity interest in multiple Chinese joint ventures. The Company completed the sale of its interest in Xiangtan DIT Automotive Products Co. In addition, the Company sold one of its two operations in Brazil for USD 9.5 million. With these divestitures, the Company expects its revenue in China and Brazil to total approximately USD 100 million in the fiscal year ended December 31, 2016.


OEM Model Product Group
North America
Ford Econoline Frame Assembly
Explorer Complex Assembly
Expedition/Lincoln Navigator Body Structures
F-Series Frame Assembly & Body Structures
Focus Body Structures
Taurus/Lincoln MKS Complex Assembly
Escape Body Structures & Complex Assembly
C-Max Body Structures
Chrysler Dodge Grand Caravan/Town & Country Body Structures
Jeep Grand Cherokee/Dodge Durango Body Structures
Jeep Wrangler Frame Assembly
Dodge Dart Body Structures
200 Body Structures
Jeep Cherokee Body Structures
Nissan Frontier/Xterra Body Structures & Frame Assembly
NV Series Frame Assembly
Titan/Armada Frame Assembly
Altima Body Structures
Rogue Body Structures
Toyota Camry Body Structures
Corolla Body Structures
Tacoma Body Structures
Honda Accord Body Structures
Volvo V40/S60/XC60 Complex Assembly
VW Touareg/Q7 Body Structures & Complex Assembly
Caddy Van Body Structures
Citigo/Mii/Up! Body Structures
Octavia Body Structures
Superb Body Structures
Fabia Body Structures
Porsche Macan Body Structures
Cayenne Body Structures & Complex Assembly
BMW 1 Series/3 Series Body Structures
Daimler Sprinter/Crafter Body Structures & Complex Assembly
C-Class Body Structures
Fiat 500 Body Structures
500X Body Structures
Ducato Body Structures
Giuletta Body Structures
MiTo Body Structures
Punto Body Structures
Renegade Body Structures
Opel Astra Body Structures
Chery A3 Chassis
Cowin 3 Chassis
Fulwin 2 Chassis
Tiggo Chassis
South America
VW Gol Body Structures
Fox Body Structures
Saveiro Body Structures
Up! Body Structures
Fiat Palio/Doblo Body Structures
Punto Body Structures
Strada Body Structures
Honda Civic Body Structures
Fit Body Structures
City Body Structures
PSA Picasso Body Structures


-The Company announced that it was honored by Ford Motor Company in its annual World Excellence Awards. The Company’s Bellevue, Ohio, U.S. factory received a Gold Award for supplier manufacturing sites that demonstrated superior quality, delivery, and cost performance throughout the year. (From a press release on June 10, 2015)

R&D Facilities

-The Company has a total of seven technical centers located in the following countries: United States, Brazil, Germany, Italy, China, India, and Japan.

Capital Expenditure

(in million USD)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Overall 124.6 98.4 78.0

-The increase in capital expenditure in the fiscal year ended December 31, 2015 compared to the previous year was primarily due to the timing of new program launches and the acquisition of a facility in Mexico.

-The Company expects to invest approximately USD 125 million for capital expenditures in the fiscal year ending December 31, 2016.