Novi, Michigan – Cooper Standard Automotive Inc. reported increases in both net income and sales for the fourth quarter and full-year 2016.
The firm's net income for the year came in at $139 million (€131 million), up from $111.9 million in 2016. Sales also increased to $3.47 billion, an increase from $3.34 billion in 2015.
Fourth quarter net income increased by about $10.5 million to $32 million in 2016 while sales increased 2.5% to $875.4 million, up from $854.4 million in 2015. Cooper Standard attributed the quarterly increase to favourable volume and mix, additional revenue from the acquisition of AMI and the consolidation of its Guangzhou joint venture in China, partially offset by customer price adjustments, the divestiture of the Company's hard coat plastic exterior trim business and unfavourable foreign exchange.
"Last year was the best year in our Company's history by nearly every measure," Chairman and CEO Jeffrey Edwards said in a statement. "We set new all-time highs in sales, gross profit margin, adjusted EBITDA and free cash flow while improving workplace safety, product quality and customer satisfaction. We are very proud of our culture of engagement that is driving innovation and excellence across all areas of the business and significantly contributing to our record results."
Regionally, the only area of the globe that decreased in sales was Europe, which dropped to $237.1 million from $249.2 million in the fourth quarter. However, from a profit standpoint the only area that dropped compared to 2016 was North America, to $49.9 million. Cooper Standard attributed the decline to the non-recurrence of the gain on the sale of the hard coat plastic exterior trim business that was recorded in the fourth quarter of 2015.
Europe and South America still posted net losses of $8.48 million and $1.52 million for the quarter, respectively. South America's a major improvement compared to a loss of $24 million in 2015.
For the year, however, each segment made gains from a profit standpoint. North America and Asia-Pacific turned in net profits of $219.7 million and $9.21 million, respectively. Europe posted a loss of about $16 million, up from a loss of $22.4 million in 2015, and South America reported a loss of $18.2 million, again a significant increase compared to its $44.1 million loss in 2015.
The gains in South America are largely attributable to the non-recurrence of an asset impairment charge recorded in the fourth quarter of 2015, Cooper Standard said. In Europe, the firm cited increased operating efficiency and improved supply chain performance as the primary reasons for the improvements.