Cooper-Standard Holdings Inc., the parent company of Cooper Standard Automotive, a leading global supplier of systems and components for the automotive industry, today announced financial results for the third quarter ended September 30, 2012. The Company also reaffirmed its previous sales outlook for 2012.
Third quarter and nine months ended September 30, 2012 results
The Company reported revenue of $684 million for the third quarter of 2012, compared to$708.5 million in the third quarter of 2011. Sales were positively impacted by increased volumes in North America, offset by unfavorable foreign exchange of $42.5 million and decreased volumes in Europe. For the nine months ended September 30, 2012, revenue was $2.18 billion, compared to $2.16 billion in the same period in 2011, an increase of $26 million or 1.2 percent.
Cooper Standard Chief Executive Officer Jeffrey S. Edwards commented, “Our global footprint has been invaluable in managing headwinds in challenging markets. Cooper Standard has been able to deliver a relatively strong quarter despite lower volumes and ongoing weakness in Europe. As we support our customers, Cooper Standard will continue to win diverse global platform business, while focusing on meeting the demand for more fuel efficient technologies.”
Gross profit for the quarter was $103.1 million or 15.1 percent of sales, compared to$108.6 million or 15.3 percent of sales in the third quarter of 2011. Gross profit was positively affected by volume and vehicle mix, raw material recovery and lean savings, offset by costs related to vehicle launch activities, footprint adjustments and increases in raw material prices.
The Company reported net income of $11.6 million or $0.44 per share on a fully diluted basis in the third quarter of 2012, compared to$15.7 million or $0.58per share in 2011. Third quarter net income reflected the same factors that primarily impacted gross profit as well as higher restructuring charges, offset by increased equity earnings from non-consolidated joint ventures and foreign exchange. Net income for the nine months ended September 30, 2012 was $112.7 million, which included a $48.3 million benefit related to the reversal of the valuation allowance on the Company’s deferred income tax assets in the United States recorded in the second quarter, as compared to net income of $79.6 million in the same prior year period.
Adjusted EBITDA for the third quarter was $69.8 million, as compared to $73.4 million in 2011. For the nine month period ended September 30, 2012, adjusted EBITDA was $227.1 million, compared to $257.5 million in the prior year period.
2012 guidance
The Company reaffirmed its previous sales outlook for 2012 and updated its guidance on other items. Assuming annualized light vehicle production volumes for 2012 are 15.1 million units in North America and 19.0 million units in Europe, the Company expects:
• Sales -$2.85 billion to $2.95 billion
• Capital expenditures -$120 million to $130 million
• Cash restructuring expenses -$40 million to $45 million
• Cash taxes -$20 million to $25 million
