Tower International, Inc. Business Report FY ended Dec. 2017

Financial Overview

(in million USD)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change (%) Factors
Net Sales 1,988.0 1,913.6 3.9 1)
Operating Income 115.3 101.0 14.2 -

1) Net Sales
-The Company’s sales during the fiscal year ended December 31, 2017 increased by 3.9% over the previous year to USD 1,988.0 million. The increase in sales was due to higher volumes in the Company’s operations in North America, combined with positive foreign currency exchange effects and favorable pricing effects due to higher steel prices in Europe. These gains were partially offset by lower sales volumes in the Company’s operations in Europe.


-As of December 31, 2017, the Company completed the sale of its joint venture in Wuhu, China, which was previously agreed upon in the fourth quarter of 2016. The Company expects to complete the sale of its joint venture in Ningbo, China during the first quarter of 2018.

Recent Developments

-The Company has approximately USD 350 million of new business from 2018 through 2020, primarily from North America. This three-year backlog represents an increase of 20% compared to the previous year’s backlog.


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
Volvo V40 Complex Assembly
XC60 Body Structures
VW Touareg/Audi Q7 Body Structures & Complex Assembly
Caddy Van Body Structures
Up!/Seat Mii/Skoda Citigo Body Structures
Skoda Octavia Body Structures
Skoda Superb Body Structures
Skoda Fabia Body Structures
Seat Ateca Body Structures
Skoda Kodiaq Body Structures
Touran Body Structures
Porsche Macan Body Structures
Cayenne Body Structures & Complex Assembly
BMW 1 Series/3 Series Body Structures
Daimler Mercedes-Benz Sprinter Body Structures & Complex Assembly
Fiat 500 Body Structures
500X Body Structures
Ducato Body Structures
Punto Body Structures
Jeep Renegade Body Structures
Alfa Romeo Giulietta Body Structures
Alfa Romeo Giulia Body Structures
Alfa Romeo Stelvio Body Structures
Opel Astra Body Structures


-The Company expects that its sales for the fiscal year ending December 31, 2018, will be approximately USD 2,140 million.

R&D Facilities

-The Company has a total of six technical centers located in the U.S., Germany, Italy, China, India, and Japan.

Capital Expenditure

(in million USD)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
Overall 104.1 116.3 119.7

-The decrease in capital expenditure in the fiscal year ended December 31, 2017 compared to the previous year was primarily due to the timing of customer program launches.

-The Company expects to invest approximately USD 150 million for capital expenditures in the fiscal year ending December 31, 2018.

Investments in U.S.

-The Company held a grand opening ceremony for its new plant in Fountain Inn, South Carolina, U.S. on June 5, 2017. The Company invested USD 75 million into the plant, which will manufacture large complex assemblies for BMW. The plant employed 40 workers at the time of the ceremony, but will increase its workforce by an additional 100 employees by the end of 2018. (From a news article on June 6, 2017)

-The Company is investing USD 49.3 million to expand two of its facilities in Kentucky, U.S. The Company will invest USD 29.4 million at its facility in Bardstown and USD 19.9 million at its facility at Shepherdsville. The expansions are in response to the addition of a new program to manufacture structural components for SUVs. The Bardstown expansion is expected to create 25 new jobs while the Shepherdsville expansion is expected to create 35 new jobs. (From a news article on April 15, 2017)