NOVI, Mich. – Cooper-Standard Holdings Inc., parent company of Cooper-Standard Automotive Inc. has announced financial results for the second quarter ended June 30, 2014. The company also confirmed its previous financial guidance for the full year.
"We continue to successfully execute on our profitable growth strategy, as evidenced by delivering normalized financial performance and achieving double digit adjusted EBITDA margin," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "A key factor to our success this quarter was the team’s ability to address isolated operational challenges in North America and Europe. In addition to delivering strong financial results, we continue to establish our global footprint with manufacturing capacity in Eastern Europe and North America and opened a new Asia Pacific technical center and headquarters in Shanghai, China. Consistent with our commitment to focusing resources on our four core product groups in order to drive further ROIC improvements and grow long-term shareholder value, we are also on track to complete the sale of our Thermal and Emissions product line."
The company reported revenue of $857.6 million for the second quarter of 2014, up 9.3 percent from $784.7 million for the second quarter of 2013. The company said this increase in sales was favorably impacted by its increased volumes in North America, Europe and Asia Pacific, incremental sales related to the Jyco Sealing Technologies acquisition and favorable foreign exchange of $7.9 million. These items were partially offset by lower production volumes in South America and customer price concessions.
Gross profit for the quarter was $146.1 million, or 17 percent of sales, compared to $132.3 million, or 16.9 percent of sales, for the same period last year. The increase in gross profit was driven primarily by the favorable impact of continuous improvement savings and the increased volumes in North America, partially offset by customer price concessions, higher staffing costs and other operating expenses.
The company reported net income of $13.2 million, or 72 cents per share on a fully diluted basis, in the second quarter of 2014, compared to $27.4 million, or $1.34 per share, in the second quarter of 2013.
2014 Guidance
The company reaffirmed its full year guidance as previously provided on May 5, 2014. Assuming North American vehicle production volume of 17 million units, European vehicle production volume of 19.9 million units and an average full year exchange rate of 1 Euro = $1.37 and 1 Canadian dollar = 92 cents, the company expects:
* Consolidated Sales: $3.25 billion – $3.35 billion
* Capital Expenditures: $195 million – $205 million
* Cash Restructuring Expenses: $20 million – $30 million
* Cash Taxes: $25 million – $35 million.
