Novi, Michigan – Cooper-Standard Holdings Inc. has notched up "record" sales and profits in the third quarter, with earnings (adjusted EBITDA) up 7.9% year-on-year to $100.8 million (€01.7 million), on sales 3.4% higher at $855.7 million.
Welcoming an eighth consecutive quarterly improvement in earnings and margins, Jeffrey Edwards, chairman and CEO of Cooper Standard declared: "We continue to drive value through culture, innovation and results."
The sales gains were linked to "favourable volume and mix" partially offset by price adjustments, currency movements and the net impact of acquisitions and divestitures, the US automotive parts and systems company announced 31 Oct.
The higher earnings, it said, were mainly due to improvements in operating efficiency, favourable volume and mix, and global supply chain optimisation. These factors more than offset the impact of price adjustments, higher compensation-related costs and investments to support growth.
During the third quarter, Cooper Standard said it launched 18 new customer programmes and was awarded $78 million in annual net new business - mostly on global platforms.
In North America sales fell 1.2% to $450.8 million, due largely to divestment, price adjustments and currency exchange rates. These effects offset improved volume and mix and the acquisition of AMI Industries' fuel and brake business. Profit there came in $3.3 million lower at $55.0 million as price adjustments and higher compensation-related costs offset operating efficiencies, improved volume and mix, and lower materials costs.
The company's Europe segment reported sales $4.5 million lower at $242.8 million on slightly lower volume, mix and price adjustments. It lost $5.6 million, though excluding planned restructuring expense of $9.7 million, this equated to a profit of $4.1 million- helped by operating efficiencies and a leaner supply-chain.
But Cooper Standard's biggest gains were in Asia Pacific, where sales grew 34.4% to $137.2 million on improved volume and mix, consolidation of the company's sealing JV in Guangzhou, China, and despite unfavourable foreign currency exchange rates.
And the Asia Pacific segment turned a loss of $0.7 million in the third quarter of 2015 to $3.0 million profit thanks mainly to favourable volume and mix as well as operating efficiencies and supply-chain economics.