Tower International, Inc. Business Report FY ended Dec. 2018

Financial Overview

(in million USD)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of change (%) Factors
Net Sales 1,571.9 1,382.5 13.7 1)
Operating Income 100.6 91.9 9.5 -

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)

Recent Developments

-During the fiscal year ended December 31, 2018, the Company’s sales backlog through 2020 increased to USD 250 million from USD 225 million.


 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 Body Structures & Frame Assembly
NV Series Frame Assembly
Titan Frame Assembly
Altima Body Structures
Toyota Camry Body Structures
Corolla Body Structures
Tacoma Body Structures
Tundra Body Structures
BMW X3 Body Structures & Complex Assembly
X4 Body Structures & Complex Assembly
X5 Body Structures & Complex Assembly
X6 Body Structures & Complex Assembly
VW Gol Body Structures
Saveiro Body Structures
Fox Body Structures
Up! Body Structures
Honda Fit Body Structures
Vezel Body Structures
Civic Body Structures
City Body Structures
Citroen Picasso Body Structures

R&D Facilities

-As of December 31, 2018, the Company has a total of five technical centers located in the U.S., China, India, Japan and Brazil.

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
Overall 83.1 67.2 72.2

-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.