Cooper-Standard Holdings Inc. has reported record results for the fourth quarter and full year 2017.
During the fourth quarter of 2017, Cooper Standard generated net income of $28.5 million, or $1.53 per diluted share on sales of $937.9 million. These results included a $33.5 million charge related to recent tax reform legislation in the United States. Adjusted EBITDA for the quarter was $131.2 million. These results compare to a net income of $31.1 million or $1.65 per diluted share and Adjusted EBITDA of $103.8 million on sales of $875.4 million in the fourth quarter of 2016.
Fourth quarter 2017 net income excluding restructuring and other special items (“adjusted net income”) totaled $63.6 million, or $3.42 per diluted share, compared to $48.1 million, or $2.56 per diluted share in the fourth quarter of 2016.
For the full year 2017, the company reported net income of $135.3 million, or $7.21 per diluted share on sales of $3.62 billion. These results included the $33.5 million charge in the fourth quarter related to recent tax reform legislation in the United States. Adjusted EBITDA for the year was $452 million. By comparison, the company reported net income of $139 million, or $7.42 per diluted share, and Adjusted EBITDA of $416.7 million on sales of $3.47 billion in 2016. The company’s Adjusted EBITDA margin for 2017 was 12.5 percent compared to 12 percent in 2016.
Adjusted net income for the full year 2017 was $208 million or $11.08 per diluted share. This compares to adjusted net income of $194.9 million or $10.41 per diluted share in 2016.
“Cooper Standard had another outstanding year in 2017,” said Jeffrey Edwards, company chairman and CEO. “It was our best year ever in terms of employee safety and we set new all-time highs in sales, Adjusted EBITDA and Adjusted EBITDA margin. In addition, our progress in material science and product innovation and the establishment of our adjacent markets business are creating new and exciting opportunities for the future. Our outlook is positive and our global team of highly engaged employees remains focused on making further advancements toward world-class performance.”
Notable Developments
During the fourth quarter, Cooper Standard launched 42 new customer programs and was awarded $107.6 million in annual net new business. For the full year 2017, the company’s annual net new business awards totaled $453 million, an increase of 13.8 percent compared to 2016.
New contract awards for the company’s recent product innovations totaled $45.1 million in the quarter, including the company’s fourth production contract for Fortrex sealing products. Since the first quarter of 2016, contract awards for innovation products total $464 million. Commercialized innovation products include: MagAlloy; ArmorHose; ArmorHose TPV; Gen III Posi-Lock; TP Microdense; and Fortrex.
Outlook
The company has issued 2018 full year guidance to include sales of $3.55 billion to $3.60 billion.
