Novi, Michigan – Cooper Standard Holdings Inc. reported increased net income and a 7.8 percent increase in sales for the first quarter of 2016.
The firm’s sales came in at $800.1 million (€700 million). Net income increased to $30.6 million compared to $21.1 million for the same period of 2015.
“Our record results in the quarter are attributable to our strategy, culture and engaged employees, as well as our continued focus on innovation and operational excellence,” Jeffrey Edwards, chairman and CEO of Cooper Standard, said in a statement. “We are pursuing very focused initiatives in each of our operating regions to drive additional growth, profitability and cash flow. Following this quarter's strong start, we expect to continue building further strategic and financial momentum for our Company throughout the year.”
The firm attributed the $62.4 million increase in sales to favourable volume mix as well as incremental revenue from the acquisition of Huayu-Cooper Standard Sealing Systems Co., its sealing joint venture in China. Cooper Standard said it launched 70 new customer programs, 48 of which were on global platforms, and was awarded $167 million in annual net new business.
Sales in North America increased 7.7 percent to $449.7 million with segment profit coming in at $54.3 million, an increase of $11.3 million. South America reported a decrease in sales to $16.4 million, compared to $30.2 million in 2015. The firm attributed the drop to lower overall vehicle production in Brazil. South America also reported a segment loss of $7.8 million, a decrease from a loss of $5.1 million in 2015.
Asia-Pacific also increased its sales, by 48.3 percent to $127.1 million. The firm attributed the jump in Asia-Pacific largely to the consolidation of sales from its acquisition of Huayu-Cooper Standard Sealing Systems. Segment profit was reported at $2.5 million, an increase of $100,000 compared to 2015.
While Europe reported a segment loss of $2.6 million, that was an increase compared to a loss of $4.4 million in 2015. Sales increased slightly, to $269.3 million compared to $266.8 million in 2015.
The firm also completed a secondary public offering of 2.3 million shares of common stock that had been owned by its three largest shareholders and announced a $125 million share repurchase program, repurchasing 350,000 shares of its common stock at $68 per share.