Cooper-Standard losses jump, despite increased sales

ERJ staff report (DS)

Novi, Michigan -- Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., said it recorded a loss of $151 million in the 12 months to December 2007. This compares with a loss of just $8.4 million in 2006. Net sales were up by 16 percent, to $2510 million in 2007 from $2160 million in 2006.

Cooper-Standard said the increased loss resulted from, "a non-cash goodwill and intangibles impairment charge of $146.4 million in the North America Fluid reporting unit." The company added, "The charge was due to less favorable results and business conditions in that unit than the company previously anticipated, relating primarily to a recent and projected decline in production volumes for certain key platforms in North America, as well as higher material costs."

Cooper-Standard Automotive completed three significant acquisitions in 2007. In March, the company acquired Automotive Components Holdings' El Jarudo fuel rail operations in Mexico. In August, the company acquired nine Metzeler Automotive Profile Systems operations in Germany, Italy, Belgium, Poland and Belarus and a joint venture interest in China. In December, the company completed the acquisition of a 74% equity interest in Metzeler Automotive Profiles India Private Ltd. These strategic acquisitions further expand the company's footprint in key growth areas and diversify the customer base.

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Press release from Cooper-Standard