NOVI, Mich.—Cooper Standard Automotive Inc. reported gains in both sales and net income during the second quarter and half year ended June 30.
Sales increased 3.4 percent to $909.1 million while net income was slightly higher at $40.5 million, compared to $40.2 million in 2016.
For the first six months, sales increased to $1.81 billion, up from $1.74 billion, and net income increased to $82.2 million compared to $71.5 million in 2016.
"We continue to drive value through culture, innovation and results," Chairman and CEO Jeffrey Edwards said in a statement. "We are attracting and developing diverse talent, supported by our unique culture, launching breakthrough innovations, delivering results by growing in key markets, as well as improving operational efficiency globally."
Cooper Standard made gains in North America with a 4.5 percent increase in sales to $481.6 million. Favorable volume and mix combined with the acquisition of AMI Industries' fuel and brake business contributed to the increase. Excluding acquisitions and foreign currency exchange rates, North America sales grew by 1.3 percent organically to $466.7 million. Segment profit also increased to $64.5 million, compared to $60.6 million in 2016.
European sales declined to $260.4 million, from $282.3 million, because of unfavorable volume and mix, foreign exchange, and price reductions. The segment reported a loss of $3.1 million, compared to a $700,000 profit in 2016.
Asia-Pacific increased sales by 21.2 percent to $140.8 million in the second quarter, thanks to favorable volume and mix combined with the consolidation of Cooper Standard's sealing joint venture in Guangzhou, China. Profit came in at $4.5 million, up from $500,000 in 2016.
In South America, sales increased 30.7 percent to $26.2 million thanks to favorable volume and mix and favorable foreign exchange. The segment still reported a loss of $3.8 million, but that was an improvement compared to a loss of $5.6 million in 2016.
During the second quarter, Cooper Standard launched 54 new customer programs and was awarded $96.4 million in annual net new business, including a second significant production contract for its Fortrex-branded premium static sealing system products. Fortrex is a proprietary material science technology that Cooper Standard said provided significant weight reduction and performance improvements compared to traditional EPDM and TPV-based sealing systems.
The company also is looking to pursue complementary adjacent market strategy for its innovative material science and technologies, entering its first agreement to license Fortrex outside of the automotive industry. Cooper Standard said it expects the successful execution of this strategy to net the company increased return on invested capital in the long term by expanding sales opportunities, accelerating the value stream of Fortrex and other innovative material science technologies, and further diversify the revenue and profit base of the firm.