Cooper-Standard Holdings Inc. Business Report FY ended Dec. 2006
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-Net sales increased from $1,827.4 million in 2005 to $2,164.3 million in 2006, an increase of $336.8 million, or 18.4%. The increase resulted primarily from the acquisition of FHS and favorable foreign exchange rates ($36.5 million), partially offset by lower unit sales volumes in North America and customer price concessions.
-Operating profit in 2006 was $12.0 million lower than the operating profit reported in 2005, decreasing from $76.3 million to $64.3 million. This is primarily due to impairment of NVH ($13.2 million), increased restructuring costs ($20.9 million) and amortization of intangibles ($2.9 million), as well as increased selling, administration, and engineering expenses ($30.0 million). Such items were partially offset by gross profit increase of $55.1 million. Selling, administration, and engineering expenses were higher in 2006 by 17.7% primarily due to the inclusion of FHS, partially offset by cost savings and restructuring initiatives.
Its products are found on the following platforms:
Body sealing Products: Ford F-Series, GM GMX 211 (Impala) and GMT900 (Silverado/Tahoe/Yukon)
Fluid Handling Products: Ford F-Series, GM GMT800/900 (includes Yukon, Tahoe, Sierra, and Silverado), Dodge Ram, and Ford B Car (Fiesta/Fusion)
NVH Control Products: Ford F-Series, GM GMT 800 (includes Yukon, Tahoe, Sierra, and Silverado) and GMX380 (Malibu)
Acquisition & Joint Venture
In February 2006, the Company completed the acquisition of the automotive fluid handling systems business of ITT Industries, Inc. FHS, based in Auburn Hills, Michigan, was a leading manufacturer of steel and plastic tubing for fuel and brake lines and quick-connects, and operated 15 facilities in seven countries.
-In November 2006, the Company finalized its joint venture agreement with Jingda. This venture, known as Cooper-Standard Jingda Automotive Co., Ltd, will sell and provide technical support and after-sale service for fluid handing systems, including brake and fuel lines, steering systems, cooling and heating systems and emission control devices.
And the Company increased its ownership from 74% to 89% in Cooper Saiyang Wuhu Automotive Co., Ltd., a joint venture with Saiyang Sealing in Wufu; and from 90% to 100% in Cooper-Standard Automotive of Korea.
In March 2007, the Company completed the acquisition of the fuel rail manufacturing business from Automotive Components Holdings, LLC. The business is located in El Jarudo, Mexico and is a producer of automotive fuel rails.
in millions dollars
-The Company operates 9 design, engineering, and administration facilities throughout the world and employ 505 research and development personnel, some of whom reside at customers' facilities. The Company utilizes Design for Six Sigma and other methodologies that emphasize manufacturability and quality, and is expanding the capabilities with new systems for Computer Aided Design, Computer Aided Engineering, vehicle testing, and rapid prototyping.
Body Sealing Products : To further its capabilities, the Company exchange plastics technology with Nishikawa Rubber Company, one of its joint venture partners, and are currently cooperating on the development of a protected "Blown sponge plastic" process as well as other plastic applications with its customers.
The Company is also currently collaborating on several customer-funded, advanced engineering projects with Ford and GM.
NVH Control Products: The Company recently developed ENVIsys, an advanced electronic system for the active control of noise and vibration for commercial applications. ENVIsys products have a wide variety of potential applications, including aircraft, rail, heavy truck, automotive, and mining equipment.