Tower International (NYSE:TOWR) manufactures metal structural components for the automotive industries. These components include frame, chassis, body-structure stampings, as well as welded components which are used for large and small cars, pickups, and SUVs. The company has recently entered supply agreements with solar energy companies to produce support structures.
The company is well distributed globally. 40% of its revenue comes from Europe, 29% from North America, and the remaining smaller fractions from Korea, South America, and China. The company also is well diversified in its customers. The largest is Volkswagen (VLKAY) with 17% followed by FIAT S.p.A. (BIT:F) and Ford Motor Company (F) each with 13%. The company hopes to maintain this diversification to ensure that is does not become too dependent on any single customer.
The company completed its initial public offering of stock on the NYSE which occurred on October 14, 2010. The stock priced at $13, which was below the initial price range of $15-$17. The company offered 6.25M shares and raised $81M. The lead underwriters of the deal were J P Morgan Chase (JPM), Citigroup (C), and Goldman Sachs Group (GS).
The company experienced a drop in revenues between 2008 and 2009. In 2008, the company reported $2.2B in revenues. However, in 2009, the number fell to $1.6B, or by 27%. The company reported a net loss both years, but the deficit rose in 2009. In 2008, its net income was -$52M, while in 2009, it was -$68M..