Cooper-Standard Automotive Posts Third Quarter 2008 Results
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Sales were $599.7 million, impacted by lower auto production
Received a record $309.7 million of net new business awards year to date
Restructuring to align with changing market conditions
NOVI, Mich., November 13, 2008: Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., today announced sales and earnings for the third quarter of 2008.
Net sales for the quarter were $599.7 million compared to $602.6 million for the same quarter of 2007, as lower auto sales volumes in North America more than offset increased sales from Brazil and Europe, acquisitions and favorable exchange rates.
Gross profit for the third quarter was $62.5 million, or 10.4 percent of sales, as compared to $83.5 million, or 13.9 percent of sales, for the same period of the prior year. The reduction of gross profit relates primarily to lower North American vehicle volume, unfavorable mix and rising material costs, with some offset provided by acquisitions and the impact of various cost-saving initiatives.
The company reported a $32.6 million net loss for the third quarter compared to a net loss of $12.8 million for the same period of 2007, due primarily to lower North American light vehicle production, restructuring charges and vehicle mix changes related to shifts in consumer demand.
The company also announced a record $309.7 million of expected net new business, a 52 percent increase versus prior year to date net new business.
For the first nine months of the year, consolidated sales increased by $318.5 million to $2.1 billion compared to the same period of 2007, the 17.7 percent increase was due largely to the impact of the acquisitions and favorable foreign exchange rates.
Adjusted EBITDA, a measure of operating performance which excludes certain non-cash and non-recurring items, was $39.1 million in the third quarter, compared to $58.2 million for the same period of 2007. A table reconciling Adjusted EBITDA, a measure not recognized under Generally Accepted Accounting Principle (GAAP), can be found in this news release.
"The global financial crisis, volatile economic conditions and sharp decline in automotive sales presented unprecedented challenges which impacted our performance in the third quarter of 2008," said Cooper-Standard Automotive President and Chief Executive Officer Edward A. Hasler. "We were able to offset the impact of these factors to some degree by proactively flexing our manufacturing costs, reducing administrative expenses and continued recovery of raw material cost escalation. Though the economic climate continues to be challenging, we are encouraged by the new business we have been awarded, especially on global small car platforms, as well as awards for products that contribute to greater fuel efficiency and reduced emissions."
Conference Call Details
Cooper-Standard Automotive will hold a conference call and webcast with investors on Thursday, Nov. 13, 2008 at 9 a.m. EST to discuss its 2008 third quarter results, provide a general business update and respond to investor questions. Cooper-Standard Automotive's executive team will host the call. A copy of the presentation will be available on the Cooper-Standard Automotive Web site 30 minutes prior to the call.
To participate in a live question-and-answer session, North American callers should dial toll-free 800-406-5356 (international callers dial 001- 913-312-0635) and provide pass code 7045812 or ask to be connected to the Cooper-Standard Automotive third quarter teleconference. Callers should dial in at least five minutes prior to the start of the call. Financial and automotive analysts are invited to ask questions after the presentations are made. Those joining via the webcast may also submit questions electronically through the Web interface.
Individuals unable to participate during the live teleconference or webcast may visit the Investor Relations portion of the Cooper-Standard Automotive Web site INVESTOR for a webcast replay of presentation.