Cooper-Standard Holdings Inc. (OTCBB: COSH), the parent company of Cooper Standard Automotive, a leading global supplier of automotive sealing, fuel and brake, fluid transfer and anti-vibration systems, today announced financial results for the second quarter ended June 30, 2013.
“I am pleased that the strategic plan we are implementing is gaining traction,” said Jeffrey Edwards, chairman and CEO, Cooper Standard. “We experienced solid revenue growth in the quarter and are continuing to deliver double-digit EBITDA margins. However, there is still a lot of hard work ahead for us — especially in light of continued headwinds in Europe and other market challenges. We continue to invest and position the Company for profitable growth as evidenced by our recent acquisition of the automotive sealing business of Jyco Sealing Technologies and the groundbreaking of our new manufacturing facility in Serbia. As we move forward, we remain focused on delivering an innovative product offering, further strengthening our customer relationships and optimizing returns with world-class operations and an engaged organization.”
Second quarter 2013 results
The Company reported revenue of $784.7 million for the second quarter of 2013, compared to $734.5 million for the second quarter of 2012. The 6.8 percent increase in sales was driven by increased volumes in all regions and favorable foreign exchange of $3.2 million, partially offset by customer price concessions.
Gross profit for the quarter was $132.3 million or 16.9 percent of sales, compared to $114.4 million or 15.6 percent of sales for the second quarter of 2012. Gross profit margin was positively affected by lean and material cost savings, increased production volumes and depreciation, partially offset by customer price concessions, higher launch costs and other operating expenses.
The Company reported net income of $26.1 million or $1.34 per share on a fully diluted basis in the second quarter of 2013, compared to $75.8 million or $3.28 per share in the second quarter of 2012 which included a one-time $53.4 million tax valuation benefit in the United States. Net income for the six months ended June 30, 2013 was$46.0 million, compared to $99.9 million in the same prior year period.
Adjusted EBITDA for the second quarter was $82.5 million or 10.5 percent of sales compared to $74.1 million or 10.1 percent of sales in the same quarter last year.
Highlights
- Broke ground on new manufacturing facility in Serbia
- Acquired automotive sealing business of Jyco Sealing Technologies with manufacturing locations in Canada, Mexico and China
- Received continued customer recognition:
- Ford Go Further Award
- PSA Global VA/VE
- GM Quality Certification
- Nissan Quality Performance
2013 guidance
The Company has updated its full year guidance for 2013 as previously provided on April 26, 2013. Assuming North American vehicle production volume of 16.2 million units, European production volume of 18.7 million units and an average full year exchange rate of $1.32/Euro, the Company expects:
- Sales growth: 5 – 6 percent over 2012
- Capital expenditures: $165 million – $175 million
- Cash restructuring expenses: $25 million – $30 million
- Cash taxes: $15 million – $20 million
