Cooper Standard reports strong 2017

NOVI, Mich.—Cooper Standard Holdings Inc. classified 2017 as a record year after disclosing gains in sales and adjusted net income.

The firm increased its yearly sales by 4.2 percent to $3.62 billion, along with net income of $138.6 million—a slight drop compared to $140.4 million in 2016. However the firm added that its adjusted net income, excluding restructuring and other special items, was $208 million, an increase of $13.1 million compared to 2016.

Sales for the fourth quarter were similar—up 7.1 percent to $937.9 million—along with net income that dropped slightly to about $30 million compared to $32 million in 2016. But like with the full-year results, adjusted net income for the quarter also increased, to $63.6 million compared to $48.1 million.

"Cooper Standard had another outstanding year in 2017," Chairman and CEO Jeffrey Edwards said in a statement. "It was our best year ever in terms of employee safety and we set new all-time highs in sales, adjusted EBITDA and adjusted EBITDA margin. In addition, our progress in material science and product innovation and the establishment of our adjacent markets business are creating new and exciting opportunities for the future. Our outlook is positive and our global team of highly engaged employees remains focused on making further advancements toward world-class performance."

Cooper Standard said it launched 42 new customer programs and was awarded $107.6 million in annual net new business for the quarter. For the year, annual net new business awards totaled $453 million, up 13.8 percent compared to 2016.

Recent innovations netted $45.1 million in the quarter, including a fourth production contract for Cooper Standard's Fortrex sealing products. Since the first quarter of 2016, Cooper Standard has generated $464 million through its commercialized innovation products, including MagAlloy, ArmorHose, ArmoHose TPV, Gen III Posi-Lock, TP Microdense and Fortrex.

Sales increased in all four regions for the fourth quarter, including a 5.3 percent increase to $479.4 million in North America. The regional also posted profit of $65.2 million, up from $49.9 million.

Europe reported sales of $267.4 million, up from $237.1 million, and was back in the black profit-wise at $1.8 million compared to a loss of $8.5 million for 2016. The year-over-year improvement was largely attributable to favorable volume and mix and cost reductions related to restructuring, partially offset by customer price adjustments, commodity price pressure and inflation.

Asia-Pacific's sales increased by $3 million to $163.2 million with a segment profit of $27.9 million. However, it reported a loss of $1.1 million, down from a profit of $3.1 million in 2016. Cooper Standard attributed the decrease to fixed asset impairment charges, wage inflation and customer price adjustments, partially offset by improved supply chain performance and net material costs.

Finally, South America improved its sales by $5.1 million to $27.9 million. The segment posted a loss of $2.6 million, which compares with a $1.5 million loss in 2016. The firm attributed the change to expenses related to a tax amnesty program and foreign exchange, partially offset by improved operating efficiency and favorable volume and mix.