Cooper-Standard Holdings Inc. Business Report FY ended Dec. 2011

Business Highlights

Financial Overview

(in million dollars)
  FY2011 FY2010 Rate of change (%) Factors
Sales 2853.5 2,414.1 18.2 1)
Operating profit 125.2 142.2 (12.0) -


-Sales were favorably impacted by an increase in volumes in most regions and favorable foreign exchange of 70.9 million dollars. In addition, the USi acquisition and the joint venture with FMEA provided 157.9 million dollars of sales.


-The Company announced its acquisition of USi, Inc. from Ikuyo Co. Ltd. of Japan. USi, based in Tennessee, U.S., provides a coating process for use in automotive applications, including vehicles produced by a number of global automakers, including Ford, General Motors, Honda, Hyundai, Nissan and Toyota. Through the sale, the Company acquires USi's 109,000 square-foot plant in Tennessee. Terms of the sale were not disclosed. (From a press release on March 28, 2011)

Business Partnership

-Nishikawa Rubber announced on March 10 that it will strengthen collaborative relationships with the Company in the business of rubber sealing for automobiles with an aim to expand and streamline its operations in the global market. Nishikawa will raise its stake in Nishikawa Standard Company LLC, a fifty-fifty joint venture company in the U.S. between Nishikawa of America, Inc. and the Company, by 10 percent to 60 percent to transform the joint venture to Nishikawa's consolidated subsidiary. The hike in equity is meant not only to further extend and strengthen the U.S. operations, but also to establish a strong foothold in the U.S. under the strategy for global expansion. The U.S. subsidiary will change its company name to Nishikawa Cooper LLC when it becomes the consolidated subsidiary. In Thailand, a 20 percent stake in Nishikawa Rubber's local corporation Nishikawa Tachaplalert Rubber Co., Ltd. will be transferred to the Company in an attempt to build a broader alliance of the group as a whole. The company name will also be changed to Nishikawa Tachaplalert Cooper. Ltd. Nishikawa Rubber will acquire a stake in the Company's subsidiary in Poland, Cooper Standard Automotive Polska. Nishikawa and the Company also agreed to reorganize the capital structure of their joint venture "Cooper Standard Automotive Mexico." Details of operations in Poland and Mexico have yet to be announced. (From an article in the Nikkan Jidosha Shimbun on March 11, 2011)

Joint Ventures

-The Company has signed an agreement with Fonds de Modernisation des Equipementiers Automobiles (FMEA) to establish a joint venture that would combine the Company's French body sealing operations and the operations of Societe des Polymeres Barre-Thomas (SPBT). SPBT is a French supplier of anti-vibration systems and low pressure hoses, as well as body sealing products, which FMEA will acquire as a preliminary step to the joint venture transaction. The joint venture entity, to be named Cooper Standard France, will be owned 51 percent by Cooper Standard and 49 percent by the FMEA. Cooper Standard France is expected to generate 2011 sales totaling approximately 230 million euros, with operations including three manufacturing facilities in France and one in Poland, and a 50 percent interest in an anti-vibration systems business in India. The transaction is expected to close in the second quarter of 2011. FMEA is a French type of venture capital mutual fund, jointly owned by Renault SA, PCA Peugeot Citroen and the Fonds Strategique d'Investissement. (From a press release on April 20, 2011)

Plant Closure

The Company announced it will close its hose manufacturing facility located in Bowling Green, Ohio, U.S. The Bowling Green hose operation employs approximately 200 people and manufactures low-pressure rubber hoses for automakers. The current Bowling Green hose business will be moved to Cooper Standard's existing facilities in Mt. Sterling, Kentucky, and Atlacomulco, Mexico over the next 12 months. (From a press release on February 4, 2011)


R&D Expenditures

(in million dollars)
  FY2011 FY2010 FY2009
Overall 83.9 68.8 62.9

R&D Structure

-The Company operates nine design, engineering, and administration facilities throughout the world and employs 590 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

-StanPro, a division of Cooper Standard Automotive, launched new injection molded components. The StanPro line of injection molded components is applicable for a wide range of fluid management designs and applications, such as tube, hose and conduit connections, mounting clips and fasteners. The new line of injection molded components will be manufactured in the United States at the company's East Tawas, Michigan facility. (From a press release on January 18, 2011)

Investment Activities

Capital Expenditure

(in million dollars)
  FY2011 FY2010 FY2009

North America

41.8 30.3 14.2


57.2 40.9 30.1
Eliminations and other 9.3 6.1 1.8
Total 108.3 77.3 46.1

Investment Outside USA

-The Company announced plans to establish a new manufacturing facility in Craiova, Romania further expanding its automotive body sealing and fluid handling businesses. The new Romanian operations will initially offer sealing and fluid handling products for Ford. At full capacity, the operation is slated to employ more than 150 people. With the addition of this facility, Cooper Standard will operate in 19 countries around the world, including Australia, Belgium, Brazil, Canada, China, Czech Republic, France, Germany, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Thailand, UK and U.S. (From a press release on August 10, 2011)