ERJ staff report (TB)
Detroit, Michigan -- Cooper-Standard Holdings Inc. reported a sharp drop in fourth-quarter net income because of higher raw material costs and fewer tax benefits than the previous year.
The supplier of sealing, fluid delivery and anti-vibration systems, which emerged from Chapter 11 bankruptcy in May 2010, said it posted fourth-quarter net income of $14.8 million on revenue of $603.7 million compared with net income of $37.4 million on revenue of $577.6 million in the same period in 2009.
Despite the reduced bottom line, the company said its gross profits for the quarter actually increased to $96.8 million from $91.1 million in the fourth quarter of 2009.
During the quarter Cooper-Standard launched new programs representing $183 million of annualized sales. Those launches included the Audi A6, Fiat 500, Ford Taurus, Chevrolet Volt and Nissan Leaf.
For the full year, Cooper-Standard reported net income of $676.9 million on revenue of $2.4 billion, compared with a net loss of $356.1 million on revenue of $1.9 billion in 2009.
Revenue growth from Asian operations offset higher raw-material costs for the year, the company said.
Cooper-Standard projects 2011 revenue between $2.5 billion and $2.6 billion. It expects to spend $90 million to $100 million on expansion projects in emerging markets.
From Tire Business (A Crain publication)