Tower International, Inc. Business Report FY ended Dec. 2016
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of change (%) | Factors | |
| Net Sales | 1,913.6 | 1,796.1 | 6.5 | 1) |
| Operating Income | 101.0 | 85.4 | 18.3 | - |
Factors
1) Net Sales
-The Company’s sales during the fiscal year ended December 31, 2016 increased by 6.5% over the previous year to USD 1,913.6 million. The increase in sales was due to higher sales volumes in the Company’s operations in North America and Europe. These gains were partially offset by unfavorable pricing and negative foreign currency exchange effects.
Restructuring
-On January 11, the Company announced the results of its divestitures that it completed during the fourth quarter of 2015. The Company received cash proceeds of USD 48 million for the sale of two of its joint ventures in China. In addition, the Company sold one of its two operations in Brazil during the fourth quarter of 2015, and received cash proceeds of USD 9 million. (From a press release on January 11, 2016)
Contracts
| 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 | |
| Chrysler | Dodge Grand Caravan/Town & Country | Body Structures |
| Jeep Grand Cherokee/Dodge Durango | Body Structures | |
| Jeep Wrangler | Frame Assembly | |
| Jeep Cherokee | Body Structures | |
| Ram Pickup | Body Structures | |
| Nissan | Frontier/Xterra | Body Structures & Frame Assembly |
| NV Series | Frame Assembly | |
| Titan/Armada | Frame Assembly | |
| Altima | Body Structures | |
| Toyota | Camry | Body Structures |
| Corolla | Body Structures | |
| Tacoma | Body Structures | |
| Tundra | Body Structures | |
| Honda | Accord | Body Structures |
| Europe | ||
| 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 |
| Fiat | 500 | Body Structures |
| 500X | Body Structures | |
| Ducato | Body Structures | |
| Giuletta | Body Structures | |
| Punto | Body Structures | |
| Renegade | Body Structures | |
| Opel | Astra | Body Structures |
R&D Facilities
-The Company has a total of seven technical centers located in the following countries: U.S., Brazil, Germany, Italy, China, India, and Japan.
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | |
| Overall | 116.3 | 119.7 | 98.4 |
-The decrease in capital expenditure in the fiscal year ended December 31, 2016 compared to the previous year was primarily due to the timing of customer program launches.
The Company expects to invest approximately USD 130 million for capital expenditures in the fiscal year ending December 31, 2017.
Investments in U.S.
-The Company announced on July 12 that it is establishing its first operations in South Carolina in Greenville County. The Company is investing USD 75 million in the new facility, located at 139 Southchase Blvd. in Fountain Inn. The facility will manufacture large complex assemblies for a leading OEM, with the first assembly program scheduled for September 2017. Greenville County was awarded a USD 100,000 grant to assist with the costs of building upgrades and renovations for the new facility. (South Carolina Department of Commerce release from July 12, 2016)