NOVI, Mich. – Cooper-Standard Holdings, parent company of Cooper Standard Automotive, has announced financial results for the fourth quarter and full year ended Dec. 31, 2014. The company also provided guidance for full year 2015.
“Our sales increased by five percent for the year, with improved operating profit. We also continued to execute our profitable growth strategy with two significant transactions in China. In addition, we introduced four breakthrough innovations and continued to upgrade our global infrastructure,” said Jeffrey Edwards, chairman and CEO, Cooper Standard. “Macroeconomic headwinds in Europe and Brazil, combined with foreign exchange volatility and soft sales on certain key platforms in North America, impacted results in the fourth quarter and full year. As we enter 2015, we remain committed to strengthening our operations and expanding our margins to enhance shareholder value.”
Cooper Standard reported revenue of $767.9 million for the fourth quarter of 2014, as compared to $794.2 million in the same quarter of the previous year. The decline was primarily driven by unfavorable foreign exchange of $31.5 million. Full year revenue was $3.2 billion, up from $3.1 billion in 2013, driven by an increase in production volume in North America, Europe and Asia Pacific. In addition, the Jyco acquisition, which was completed on July 31, 2013, provided $45.2 million of incremental sales. Full-year sales were partially offset by unfavorable foreign exchange and customer price concessions.
Gross profit for the fourth quarter of 2014 was $117.8 million, as compared to $105.1 million for the fourth quarter of 2013. For the full year 2014, the company generated a gross profit of $509.4 million, representing 15.7 percent of sales, compared to $472.7 million in 2013, or 15.3 percent of sales. The increase was driven by the favorable impact of continuous improvement, material cost savings and increased production volumes in North America, Europe and Asia Pacific.
Operating profit for the fourth quarter of 2014 was $7.1 million, as compared to $14.6 million in the same quarter in 2013. The company reported a net loss of $12.8 million in the fourth quarter of 2014, compared to a net loss of $20.8 million in the same quarter of 2013.
For the full year 2014, the company reported a net income of $42.8 million or $2.39 per share on a fully diluted basis. This compares with net income of $47.9 million or $2.24 per share in 2013. Net income for the year also included $18.9 million (after tax) of debt extinguishment costs related to the company’s debt repurchase transactions that were completed in the second quarter of 2014.
For 2015, assuming North American vehicle production volume of 17.4 million units, European production volume of 20.3 million units and an average full year exchange rate of 1 Euro = $1.19 and 1 Canadian dollar = 84 cents, the company expects consolidated sales to be in the range of $3.3 billion to $3.4 billion.
