Cooper-Standard Holdings Inc. has reported results for the first quarter 2018.
During the first quarter of 2018, the company generated net income of $56.8 million, or $3.07 per diluted share, and Adjusted EBITDA of $122.6 million on sales of $967.4 million. These results compare to net income of $41.7 million, or $2.20 per diluted share, and Adjusted EBITDA of $111 million on sales of $902.1 million in the first quarter of 2017.
The company’s Adjusted EBITDA as a percent of sales for the first quarter of 2018 was 12.7 percent compared to 12.3 percent in the first quarter of 2017.
“We are pleased to have started the year with solid operating performance and strong financial results,” said Jeffrey Edwards, chairman and CEO of Cooper Standard. “Our sales growth continues to outpace global light vehicle production and our team’s further advancements toward world-class operations are helping to reduce costs and expand margins.”
The company’s first quarter net income, excluding restructuring and other special items (“adjusted net income”), totaled $63.8 million, or $3.45 per diluted share, compared to $55.9 million, or $2.95 per diluted share in the first quarter of 2017. The increase in adjusted net income was driven primarily by improvements in operating efficiency and lower selling, general administrative and engineering (“SGA&E”) expense. These were partially offset by customer price reductions and inflation. Higher material costs were offset by purchasing lean initiatives and supply chain optimization, the company added.
First quarter 2018 sales increased by $65.3 million or 7.2 percent compared to the first quarter of 2017. The year-over-year increase was largely attributable to $53 million of favorable exchange rate fluctuations, primarily in Europe and Asia, and favorable volume and mix, net of customer price reductions.
First quarter adjusted EBITDA increased by $11.7 million or 10.5 percent compared to the first quarter of 2017. The year-over-year increase was primarily attributable to net operational efficiencies of $25 million, purchasing efficiencies and lower SGA&E expense, partially offset by customer price reductions and commodity price pressure.
The company has adopted a new accounting standard related to Compensation – Retirement Benefits (ASU 2017-07) that reclassifies the presentation of the components of net periodic benefit costs in the statements of net income. As a result, prior period data have been recast.