NOVI, Mich.—Cooper Standard Holdings Inc. had its “best quarter in three years,” according to Jeffrey Edwards, chairman and CEO of the firm, as net income jumped 14.4 percent in the second quarter of 2015 compared with the same period of 2014.
Excluding tax amounts of a $2.6 million related to the acquisition of Huayu-Cooper Standard Sealing Systems Co. (Shenya) and $7 million in restructuring, Cooper-Standard's net income rose to $40.9 million from $35.7 in 2014.
Accounting for those expenses, net income was $36.5 million, compared to $13.2 million in 2014.
Second quarter sales increased by $3.2 million or 0.4 percent, to $860.8 million, compared to the second quarter of 2014, when sales were $857.6 million. The adjusted earnings before interest, taxes, depreciation and amortization was $97 million in the quarter, a 5.7 percent increase compared with $91.8 in the same period last year.
Cooper-Standard attributed the year-over-year variance to improvements in operating efficiency, favorable volume and mix, and lower raw material costs. It said these favorable items were partially offset by wage increases, unfavorable price adjustments and a $10 million negative impact from unfavorable foreign currency exchange rates.
"Our second quarter results represent another solid step toward achieving our 2015 objectives,” Edwards said in a statement. “In terms of adjusted EBITDA margin, it was our best quarter in more than three years.
“We are particularly pleased with the continued strong performance in our North American operations, the margin improvements we are making within our European operations and our profitable growth in Asia. In addition, our increased focus on cash generation is driving positive change that is enhancing our ability to improve shareholder value going forward.”
For the first six months of 2015, Cooper-Standard reported net income of $57.5 million and adjusted EBITDA of $177.7 million on sales of $1.66 billion. In the first six months of 2014, net income was $32.9 million and adjusted EBITDA of $172.3 million on sales of $1.7 billion.
Cooper Standard reported sales increases in the Asia Pacific and North America segments. In Asia Pacific, sales jumped 92.1 percent to nearly $112 million, compared to $58.2 million in the similar quarter in 2014. Sales in North America increased slightly, from $453.5 million to $452.2 million.
Sales in Europe ($270.3 million in the second quarter of 2015, $305.7 million in 2014) and South America ($25.1 million/$41.4 million in 2014) fell, attributable to unfavorable currency rates.
Cooper Standard, headquartered in Novi, manufactures sealing, fuel and brake delivery, fluid transfer and anti-vibration systems and components for the automotive industry. It employs more than 27,000 globally and operates in 20 countries.