Cooper-Standard Automotive Posts 2009 First Quarter Results
-- First quarter sales of $401.8 million on lower global auto production -- Reorganized to geographic operating structure -- Net new business of $95.6 million in first quarter 2009
NOVI, Mich., May 19 -- Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., today announced sales and earnings for the first quarter of 2009.
Net sales for the first quarter were $401.8 million, down from $756.0 million for the same quarter of 2008. This decrease resulted primarily from significantly lower vehicle production volume in North America, Europe and Brazil, unfavorable changes in vehicle mix and the strengthening of the U.S. dollar.
The company reported a $55.0 million net loss for the first quarter, compared to net income of $15.7 million for the same period of 2008, due to significantly lower sales volume, increased restructuring and reorganization costs, and unfavorable foreign exchange. Net interest expense for the quarter totaled $21.1 million, a $3.1 million improvement over the prior year first quarter, due to lower interest rates and reduced term loan balances.
"Severe economic conditions have kept demand for new vehicles at historically low levels and brought transformational changes to the global automotive industry," said Cooper-Standard Automotive Chairman and Chief Executive Officer James S. McElya. "The numerous cost-containment actions taken by our management team, including a reorganization of our operating structure, have enabled us to partially offset lower industry volumes and position the company for success as the industry consolidates, while fully serving our global customers."
To better manage its operating costs and resources in severe industry conditions, on March 26, Cooper-Standard Automotive announced the implementation of a comprehensive reorganization plan that changed the company's operating structure and reporting segments. The new operating structure allows Cooper-Standard Automotive to maintain its full portfolio of global products and provide unified customer contact points. In addition, the reorganization will enable the company to realize substantial savings when fully implemented.
Net New Business Wins
During the first quarter of 2009, the company received $95.6 million in net new business awards, up $26.4 million versus prior year first quarter. This business is across the company's global customer portfolio with particular emphasis in Europe.