Cooper-Standard Automotive Reports 2008 Fourth Quarter and Full Year Results
NOVI, Mich., April 2, 2009: Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., today announced Cooper-Standard Automotive's fourth quarter and full year 2008 earnings.
Net sales for 2008 increased to $2.59 billion, compared to $2.51 billion in 2007, an increase of $83.4 million. The increase resulted primarily from the full year impact of the 2007 acquisitions of the Metzeler Automotive Profile Systems (MAPS) businesses in Germany, Italy and India, and the Automotive Components Holdings' El Jarudo fuel rail operations in Mexico, as well as favorable foreign exchange rates, partially offset by lower sales volume in North America particularly in the second half of the year. For the fourth quarter of 2008, net sales were $473.3 million compared to $708.3 million for the same period in 2007.
Gross profit for 2008 was $334.5 million, or 12.9 percent of sales, as compared to $397.1 million, or 15.8 percent of sales, in 2007. This decrease is primarily the result of reduced North American volume, unfavorable mix and higher raw material prices. For the quarter, gross profit was $34.9 million compared to $113.4 million for the same quarter of 2007.
Cooper-Standard posted a $121.5 million net loss for 2008 compared to a net loss of $151 million in 2007. The company reported a $116.1 million net loss for the fourth quarter of 2008 compared to a net loss of $152.6 million for the same period of 2007. This change is primarily due to the impairment charges of $146.4 million in 2007, compared to $36 million in 2008, offset by reduced volumes, increased material costs and unfavorable foreign exchange. Operating profit in 2008 was $0.1 million compared to a $29.6 million operating loss reported in 2007.
"The significant and rapid decline in worldwide auto production, especially in the fourth quarter of 2008, is reflected in our financial results," said Jim McElya executive chairman and chief executive officer of Cooper-Standard Automotive. "We are taking appropriate measures to realign our operations to effectively operate in the extremely challenging industry conditions that we see continuing for the foreseeable future."
Net new business awarded during 2008 was $378.7 million, an increase of 66.9 percent, from 2007 net new business of $226.9 million. This includes new contracts for virtually every major global automaker.
During the fourth quarter of 2008, the company launched production on several new customer vehicles, as well as next-generation models for existing platforms, including:
-- Chery (M11, M12); -- Ford (Fiesta global program); -- General Motors (Insignia); -- Honda (Fit); -- Porsche (911); and -- VW (engine on various models).
The company continues to expand its global reach, with approximately 52% percent of net sales in 2008 originating outside of North America. This was the first year the majority of the company's sales were outside North America.