ERJ staff report (DS)
Novi, Michigan -- Cooper-Standard Holdings Inc. reported revenue of $688.8 million for the first quarter of 2011, compared with $596.3 million in first quarter 2010. Net income surged to $44.9 million in the period, compared $3.4 million in the same period last year. The Company also provided an updated outlook for 2011.
Cooper-Standard referred to its acquisition of the former CF Gomma operations at Barre-Thomas in France, saying, "Most recently, Cooper Standard, in partnership with the French government's Fonds de Modernisation des Equipementiers Automobiles (FMEA), acquired strategically important new operations and capabilities in Europe that will dramatically enhance the Company's ability to win anti-vibration and hose business on global platforms. "
The joint venture, called Cooper Standard France, combines the operations of Societe des Polymeres Barre-Thomas (including two manufacturing facilities in France and one in Poland, as well as a 50 percent interest in an anti-vibration systems business in India) with Cooper Standard's existing French body sealing businesses. The joint venture company is 51 percent owned by a wholly-owned subsidiary of Cooper Standard and 49 percent owned by the FMEA.
Cooper-Standard said, "The joint venture also expands the Company's existing body sealing capability and further strengthens the global relationship with Peugeot Citroen Automotive. In addition to the strategic and long-term opportunities it creates for the Company, the consolidated joint venture is expected to contribute to Cooper Standard approximately $125 million in incremental 2011 sales."
Reflecting the beneficial effects of the FMEA/Barre-Thomas transaction, modestly higher industry volume projections and favorable foreign exchange, Cooper Standard updated its 2011 sales expectations to a range of $2.7 billion to $2.8 billion. The Company expects its 2011 capital expenditures to be between $95 million and $105 million.
"Operationally and strategically, Cooper Standard executed well in the first quarter," said Jim McElya, chairman and chief executive officer, Cooper Standard. "As a result, we delivered strong performance despite climbing material costs; announced significant strategic transactions; and further strengthened Cooper Standard's ability to win a higher share of global platform awards."
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Press release from Cooper Standard