Novi, Michigan )--Adjusted pretax earnings fell 20 percent for Cooper-Standard holdings Inc. in the second quarter, but the firm still called the period "solid" on the basis of improved sales, lower debt and an improved balance sheet.
The parent of Cooper-Standard Automotive Inc. blamed the earnings decline on higher raw materials costs. Despite the drop, the earnings/sales ratio still stood at 11.5 percent.
The company posted record sales, settled purchase-related payments, maintained a strong cash position, cut its debt and improved its balance sheet during the quarter said Jim McElya, president and CEO, Cooper-Standard Automotive.
Sales increased 0.8 percent to $489.1 million for the quarter but declined 2.3 percent for the half to $959.3 million. The adjusted pretax earnings for the quarter were $56.5 million and for the half profits fell 20.6 percent to $110 million.
For the remainder of 2005 Cooper-Standard is counting on new business to drive sales. During the quarter it gained new accounts that will generate $75.5 million in annualised sales, on top of $53 million garnered in the first quarter.
