Tower International, Inc. Business Report FY ended Dec. 2018
|(in million USD)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||Rate of change (%)||Factors|
1) Net Sales
-The Company’s sales during the fiscal year ended December 31, 2018 increased by 13.7% over the previous year to USD 1,571.9 million. The increase in sales was due to higher sales volumes and increased pricing, primarily in steel. These gains were partially offset by unfavorable foreign exchange effects.
-The Company completed the sale of its Ningbo, China joint venture in the second quarter of 2018. The Company had previously entered into agreements to sell the joint venture in the fourth quarter of 2016.
-The Company announced it has signed a Memorandum of Understanding relating to the sale of all of its European Operations to Financiere SNOP Dunois S.A. (FSD), a privately owned French automotive supplier. The Company’s European Operations include manufacturing facilities in Belgium, Czech Republic, Germany, Italy, Poland and Slovakia and offices in Germany and Italy. "This accretive transaction with FSD allows Tower to focus on a North American business with strong organic growth, profit margins and cash flow,” said Company CEO Jim Gouin. The divestiture is expected to take place during the first quarter of 2019. The Company expects to recognize a book loss of approximately USD 60 million related to the sale of the European operations. (From a press release on November 20, 2018)
-During the fiscal year ended December 31, 2018, the Company’s sales backlog through 2020 increased to USD 250 million from USD 225 million.
|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|
|Jeep Cherokee||Body Structures|
|Ram Pickup||Body Structures|
|Nissan||Frontier||Body Structures & Frame Assembly|
|NV Series||Frame Assembly|
|BMW||X3||Body Structures & Complex Assembly|
|X4||Body Structures & Complex Assembly|
|X5||Body Structures & Complex Assembly|
|X6||Body Structures & Complex Assembly|
-As of December 31, 2018, the Company has a total of five technical centers located in the U.S., China, India, Japan and Brazil.
|(in million USD)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||FY ended Dec. 31, 2016|
-The increase in capital expenditure for the fiscal year ended December 31, 2018 was due to the timing various customer program launches.
-The Company is expecting to invest approximately USD 110 million in the fiscal year ending December 31, 2019.