ERJ staff report (R&PN)
Novi, Michigan - The parent of Cooper-Standard Automotive reported a 46.7-percent drop in net income for the first quarter despite an 11-percent gain in sales.
Net earnings for Cooper-Standard Holdings Inc. dropped to $23.8 million for the first three months of 2012, while sales climbed to $765 million. The firm said the $44.9 million in net income for the first quarter of 2011 included an $11.4 million gain from a sale of a portion of the company's interest in a joint venture.
Also impacting this year's net income were increases in expenses related to planned additions to engineering resources to support the company's research and development efforts and customers' global platform initiatives, foreign currency rates and a slight increase in restructuring charges and the effective tax rate.
The higher sales were â€œreflective of our strategic initiatives taking hold as both our acquisitions and footprint expansion are contributing to our sales growth,â€ said Chairman and CEO Jim McElya.
Cooper-Standard reaffirmed its outlook for 2012, with sales expected to be between $2.85 billion and $2.95 billion, assuming North American vehicle production of 14.4 million units and European production volume of 18.9 million. The firm plans capital expenditures of between $110 million and $120 million as it continues to expand its emerging market presence to support customer growth and new business opportunities.
From Rubber & Plastics News (A Crain publication)
press release from Cooper-Standard