Tower International, Inc. Business Report FY ended Dec. 2015
|(in million USD)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Rate of change (%)||Factors|
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.
|Expedition/Lincoln Navigator||Body Structures|
|F-Series||Frame Assembly & Body Structures|
|Taurus/Lincoln MKS||Complex Assembly|
|Escape||Body Structures & Complex Assembly|
|Chrysler||Dodge Grand Caravan/Town & Country||Body Structures|
|Jeep Grand Cherokee/Dodge Durango||Body Structures|
|Jeep Wrangler||Frame Assembly|
|Dodge Dart||Body Structures|
|Jeep Cherokee||Body Structures|
|Nissan||Frontier/Xterra||Body Structures & Frame Assembly|
|NV Series||Frame Assembly|
|VW||Touareg/Q7||Body Structures & Complex Assembly|
|Caddy Van||Body Structures|
|Cayenne||Body Structures & Complex Assembly|
|BMW||1 Series/3 Series||Body Structures|
|Daimler||Sprinter/Crafter||Body Structures & Complex Assembly|
-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)
-The Company has a total of seven technical centers located in the following countries: United States, Brazil, Germany, Italy, China, India, and Japan.
|(in million USD)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||FY ended Dec. 31, 2013|
-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.