Cooper-Standard Holdings Inc. Business Report FY ended Dec. 2018
|(in million USD)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||Rate of change (%)||Factors|
|Sales by Geographic Area|
1) Net Sales
-The Company’s sales for the fiscal year ended December 31, 2018 increased by 0.3% over the previous year to USD 3,629.3 million. The Company’s net sales gains were primarily driven by positive foreign currency translation effects as well as an increase in sales due to the net impact of various acquisitions and divestitures. These gains were partially offset by a decrease in organic sales.
2) North America sales
-Sales for the Company’s North America segment increased by 2.2% in the fiscal year ended December 31, 2018 to USD 1,924.7 million. The Company’s increased sales in North America were primarily due to the effect of acquisitions, as the effect of organic growth and negative foreign currency translation effects were comparatively minor.
3) Europe sales
-Sales in the Europe segment in the fiscal year ended December 31, 2018 totaled USD 1,030.1 million, a decrease of 1.3% from the previous year. While the segment had increased sales due to positive foreign currency exchange effects, organic losses and a net decrease in sales due to the net effect of acquisitions and divestitures more than offset the gains.
4) Asia Pacific sales
-The Company’s Asia Pacific segment had sales of USD 576.4 million in the fiscal year ended December 31, 2018, decreasing 1.5% from the previous year. Increased sales from positive foreign currency exchange effects as well as increased sales from business acquisitions were offset by losses due to decreased sales volumes.
5) South America sales
-The South America segment’s sales decreased by 8.0% in the fiscal year ended December 31, 2018 to USD 98.1 million. An increase in sales due to increased sales volume and improved product mix was offset by negative foreign currency exchange effects.
-The Company announced its agreement to acquire Lauren Manufacturing and Lauren Plastics, extruders and molders of organic, silicone, thermoplastic and engineered polymer products for industrial and specialty automotive sealing applications. More than 500 Lauren employees from two facilities in New Philadelphia, Ohio; one in Kent, Ohio; and one in Spring Lake, Michigan will be transferred to the Company. The acquired companies' materials expertise will further strengthen the Company’s extensive material science capabilities. (From a press release on July 3, 2018)
-LS Mtron Ltd. reached an agreement with the Company regarding the sale of an 80.1% stake in its automotive parts business to the Company. Based on the deal, LS Mtron will withdraw from the market of brake hoses, power steering hoses, charge air-cooler hoses and other automotive parts and components. LS Mtron has recently been restructuring its business lines to focus on tractors and injection businesses. In July 2017, LS Mtron sold its subsidiary, LS Automotive, and its copper foil and thin film division to Kohlberg Kravis Roberts & Co. LP (KKR). (From a press release on May 10, 2018)
-The Company and Continental have reached an agreement on the divestiture of the Company’s anti-vibration systems business. With the acquisition, Continental aims to expand its global presence for anti-vibration and noise reduction technology, particularly in North America. The agreement includes a binding offer from Continental to purchase substantially all of the Company’s anti-vibration business in France and its respective interest in a joint venture in India. The Company’s anti-vibration systems business operates five manufacturing facilities, and includes R&D capabilities in Canada, France, India and the U.S. (From a press release on November 2, 2018)
-May 13, 2018, Dongfeng Motor Parts And Components Group Co., Ltd. and the Company signed a joint venture agreement in Wuhan. The two companies will jointly manufacture piping systems and sealing materials. The joint venture’s main products are fuel lines, brake lines, fuel delivery systems and automotive sealing systems. The joint venture will also assume the piping business from Dongfeng Motor Pump Co., Ltd. The new venture’s headquarters plant will be in Wuhan and will add a plant in Shiyan based on the piping plant of current Dongfeng Motor Pump. The Wuhan plant will manufacture products for passenger car manufacturers, while the Shiyan plant will build products for commercial vehicles manufacturers and other clients. (From a press release on May 16, 2018)
-The Company will build a new world headquarters in Northville, Michigan, a short distance from its current world headquarters in Novi and in close proximity to its Global Technology Center in Livonia. The project is expected to be completed in early 2020. The three-story 110,000-square-foot facility will house approximately 400 employees, with opportunities for future expansion, in an open-concept office space with collaborative and video conferencing spaces. (From a press release on December 18, 2018)
-The Company was named as a finalist for the 2019 Automotive News PACE Awards for its proprietary AI-based polymer compound development software. This marks the second consecutive year in which the Company was recognized as an PACE Award finalist. The Company developed its own proprietary AI software to accelerate development of polymer compounds for specific applications. Using this software, the Company has shortened material development times while also realizing rapid discovery of new compounds that offer superior performance properties. (From a press release on October 17, 2018)
-The Company was named a GM Supplier of the Year by General Motors during its 26th annual Supplier of the Year awards ceremony held in Orlando, Florida. (From a press release on April 25, 2018)
-The Company demonstrated its material science leadership by winning the 2018 Automotive News PACE Award for its Fortrex lightweight elastomeric material. When applied to automotive sealing applications, the unique chemistry of Fortrex offers reduced weight while delivering superior weather sealing performance and aesthetics. (From a press release on April 10, 2018)
|(in million USD)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||FY ended Dec. 31, 2016||FY ended Dec. 31, 2015|
-As of December 31, 2018, the Company has 20 research and development facilities across the world.
-The Company’s Japanese subsidiary, Cooper-Standard Automotive Japan Co. Ltd., opened a new head office and engineering center in the Yokohama Mitsui Building in Yokohama, Kanagawa Prefecture, Japan. The engineering facility has equipment for prototype checks, and will be used to enhance product development and provide technical service for Japanese automakers. The Company’s sales to Japanese automakers account for less than 5% of its total sales. Jeffrey Edwards, Chairman and CEO of the Company said that the Company aims to strengthen its product development in Japan, and is aiming to double its sales from Japanese automakers. (From an article in the Nikkan Jidosha Shimbun on September 5, 2018)
Recent technologies related to advanced materials, processing and weight reduction
-In recent years, the Company has realized several technologies related to advanced materials, processing and weight reduction. These technologies include ForTrex, a material platform that provides reduced weight while improving performance and aesthetics; MagAlloy, a processing technology to develop material for brake lines that provides increased long-term durability through improved corrosion resistance; and ArmorHose, a material which enables more durable coolant hoses and removes the necessity for abrasion sleeves on under-hood hose assemblies.
|(in million USD)|
|FY ended Dec. 31, 2018||FY ended Dec. 31, 2017||FY ended Dec. 31, 2016|
-In the fiscal year ending December 31, 2019, the Company expects to invest between USD 180 million and USD 190 million in capital expenditures.
Investments outside U.S.
-In order to localize elastomer mixing capabilities and support continued growth in Mexico, the Company recently celebrated the groundbreaking of its new 100,000 square-foot mixing facility in Aguascalientes, Mexico. The new facility, representing an USD 11 million investment, supports the Company's mission to accelerate innovation while delivering world-class quality with speed and efficiency. It is expected that the facility will begin operations in early 2019 and ultimately employ about 100 employees at full capacity. (From a press release on June 27, 2018)