Even in today's challenging operating environment, Cooper-Standard Holdings Inc. has reported an increase in sales and a reduction in non-operating expenses for the third quarter ended 2007. The parent company of Cooper-Standard Automotive Inc. recently announced third quarter sales of $602.6 million, compared to $505.5 million in the same quarter a year ago, an increase of 19.2 percent. Operating profit for the quarter was $17.2 million, an improvement of $21.5 million over the previous year. The company reported a net loss of $12.8 million during the quarter, compared to a net loss of $27.0 million in the third quarter 2006. The improvement was driven by the increase in operating profit and a $1.6 million reduction in other non-operating expenses, partially offset by a change in tax expense of $8.9 million. Tax provision increased primarily due to the inability to recognize income tax benefits on operating losses in the U.S., and increased expense related to German tax law changes enacted in the third quarter. "This has been a year of unprecedented challenges in the automotive industry, and successful suppliers must be able to evolve to continue meeting the needs of their customers," says Jim McElya, the company's chairman and CEO. "Cooper-Standard's operating performance illustrates the company's ability to execute its strategy in this changing environment. We are staying out in front of the many macro-economic factors affecting our business and our results indicate that our strategy is on track." Adjusted EBITDA for the quarter was $58.2 million versus $41.5 million in 2006, which was positively affected by savings realized through restructuring and lean manufacturing initiatives, the benefit of the weakening U.S. dollar and the addition of the recently acquired El Jarudo and Metzeler businesses. Negatively affecting the business during the quarter were continued raw material increases and customer price concessions. For the nine months ended Sept. 30, 2007, the company's sales were $1.8 billion compared to $1.6 billion for the same period in 2006. Operating profit was $88.0 million compared to $62.3 million last year, and net income for the nine months was $1.6 million versus a loss of $1.5 million in 2006. "During the quarter, we completed the acquisition of Metzeler weathersealing operations in Germany, Poland, Italy and Asia, and to date, the integration of those operations has gone smoothly," McElya adds. "This transaction has greatly diversified our customer mix by expanding our business by more than $400 million in non-North American sales. Our ability to obtain financing to acquire the Metzeler operations — in light of a difficult credit market — is a further validation from the financial community that our strategy is sound and on track," McElya adds. During the third quarter of 2007, Cooper-Standard launched a number of new products and programs, including:
Cooper-Standard continues its strategic focus on operational excellence, innovation and technical expertise. "Our strategic focus on operational excellence continues to drive performance and impact results. Lean targets remain on track for 2007, and third quarter launches include significant global business that is being produced in low cost country facilities," says Ed Hasler, president and chief operating officer. "Our ongoing efforts to innovate continue to be recognized. We received two Honorable Mention Awards at this year's Automotive News PACE Awards. We were also honored with three Finalist awards at a recent Society of Plastics Engineers (SPE) Automotive Divisio Most Innovative Use of Plastics Awards ceremony, the seventh consecutive year that we have been recognized by this organization. This consistent and sustained recognition reflects the dedication our employees have to constantly innovate on behalf of our customers." For more information about Cooper-Standard Holdings Inc., visit the company's Web site. |
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