Cooper-Standard Holdings Inc. Business Report FY ended Dec. 2009

Business Highlights

Financial Overview

(in million dollars)
  FY2009 FY2008 Rate of change (%) Factors
Sales 1,945.3 2,594.6 (25.0) 1)
Operating profit (344.1) 0.1 - 2)

-The decrease of Sales resulted primarily from lower unit sales volume in both its North America (primarily the United States and Canada) and International (primarily Europe) segments. In addition, foreign currency exchange had a net unfavorable impact on sales of $110.8 million due to the relative strength of the dollar against other currencies (most notably the euro). Customer price concessions also contributed to its decrease in sales.

-The operating loss in 2009 was primarily due to the impairment charges of $363.5 million in 2009 compared to $33.4 million in 2008, reduced volumes and unfavorable foreign exchange, partially offset by various cost saving initiatives.

-On August 3, 2009, the Company announced that the Company and its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Canadian subsidiary, Cooper-Standard Automotive Canada Limited, will seek relief under the Companies' Creditors Arrangement Act in Canada. The filings include all wholly-owned U.S. and Canada operations. (From a press release on Aug 3)


-In the second half of 2009, the Company closed two manufacturing facilities, one located in Ohio and another located in Germany.

-Cooper-Standard Automotive Espana SL, a Spanish unit of Cooper-Standard Holdings, will close its plant in Getafe, Madrid, Spain, partly due to the continued deterioration of the automotive industry. The Getafe operation manufactures fuel and brake products, such as brake boosters, vapor and clutch lines, and water valves. The closure is slated to be complete by August - September 2010. (From a press release on March 2, 2010)


R&D Expenditures

(in million dollars)
  FY2009 FY2008 FY2007
Overall 62.9 81.9 77.2

R&D Structure

-The Company operates nine design, engineering, and administration facilities throughout the world and employs 500 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.

Product Developments

-The Company's recent product innovations include the ESP Thermoplastic Glassruns (Body & Chassis), a proprietary plastics-to-aluminum overmolding process (Fluid Handling), and the hydromounts (Body & Chassis).

Some examples of innovations are;
-Vehicle Sealing: Safe Seal, Four Sided Flush Glass Assemble, STRATLINK, Inner Door Trim Module
-Fuel & Brake: Direct Injection Fuel Rail, Quick Connect with Integrated Sensor
-Thermal Management: Series IV Electric Cooling Pumps, 3-Way and 4-Way Valves
-Anti-Vibration Systems: Hydro Body Mounts, Multi-State Mounts

Investment Activities

Capital Expenditure

(in million dollars)
  FY2009 FY2008 FY2007

North America

14.2 27.6 45.7


30.1 54.8 58.3
Eliminations and other 1.8 9.8 3.3
Total 46.1 92.1 107.3