Cooper-Standard Holdings Inc. Business Report FY ended Dec. 2008
Business Highlights
Financial overview
| (in millions dollars) | FY2008 | FY2007 | Rate of change (%) | Factors |
| Sales | 2,594.6 | 2,511.2 | 3.3 | See factor (1) |
| Operating profit | 140 | (29.7) | - | See factor (2) |
Factor
(1)
-The increase resulted primarily from the full twelve months impact of the MAPS, El Jarudo and MAP India acquisitions and favorable foreign exchange rates ($70.6 million) partially offset by lower volume.
-In North America, its sales decreased by $282.0 million primarily due to lower unit sales volume partially offset by $5.8 million of favorable foreign currency translation.
-In the international operations, a sales increase of $365.4 million was attributable to a combination of factors including the acquisition of MAPS and MAP India, $64.8 million of favorable impact of foreign currency translation and higher unit sales volumes partially offset by customer price concessions.
(2)
-This increase is primarily due to the impairment charges of $146.4 million in 2007 compared to $33.4 million in 2008 partially offset by reduced volumes, increased material costs and unfavorable foreign exchange.
Acquisition
-On December 27, 2007, the Company completed the acquisition of the majority joint venture interest of Automotive Sealing Systems, S.A. (ASSSA) in Metzeler Automotive Profiles India Private Limited (MAP India), the leading manufacturer of automotive sealing products in New Delhi, India. In the transaction, The Company acquired 74 percent of the equity shares of MAP India. The remaining 26 percent in the joint venture is owned by Toyoda Gosei Co., Ltd. In August 2007, Cooper-Standard Automotive acquired Metzeler sealing systems businesses in Germany, Italy, Poland, Belgium and Belarus, including a joint venture interest in China, from ASSSA in a related transaction. MAP India's operations include manufacturing facilities in New Delhi and Gurgaon. Both facilities are dedicated to the production of automotive weather sealing systems and have a combined employment of approximately 1,000. Annual revenue from the operations is approximately $26 million. (From a press release on Jan. 24, 2008)
Restructuring
-In July 2008, the Company implemented a restructuring action and announced the closure of two manufacturing facilities, one located in Australia and the other located in Germany. Both closures are a result of changes in market demands and volume reductions and are expected to be completed in 2009.
-The Company converted its product line operating divisions into new units based on two divisions, North America and International (covering Europe, South America and Asia). The new structure creates unified customer contact points to offer its full portfolio including body sealing systems; fluid handling systems; and NVH control systems. The reorganization will result in a reduction in the company's worldwide salaried workforce of approximately 20 percent. (From a press release on Mar 26, 2009)
R&D
R&D Expenditures
R&D Structure
-The Company operates 9 design, engineering, and administration facilities throughout the world and employ 665 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.
Product Developments
-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.
| (in millions dollars) | FY2008 | FY2007 | FY2006 |
| Total | 74.8 | 77.2 | 81.9 |
R&D Structure
-The Company operates 9 design, engineering, and administration facilities throughout the world and employ 665 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.
Product Developments
-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.
Investment Activities
Capital Expenditure
| (in millions dollars) | FY2008 | FY2007 | FY2006 |
| Body & Chassis | 54.7 | 55.6 | 36.5 |
| Fluid | 19.4 | 39.2 | 32.4 |
| Asia Pacific | 8.3 | 9.2 | 11.1 |
| Eliminations and other | 9.8 | 3.3 | 2.9 |
| Consolidated | 92.1 | 107.3 | 82.9 |