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Cooper Standard reports fourth quarter and full year 2019 results

Full year net income totaled $67.5 million or $3.92 per fully diluted share

Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the fourth quarter and full year 2019.

Summary

  • Full year net income totaled $67.5 million or $3.92 per fully diluted share
  • Full year adjusted net loss totaled $3.3 million or $(0.19) per fully diluted share
  • Full year adjusted EBITDA totaled $201.6 million
  • Fourth quarter cash from operating activities of $68 million, free cash flow of $34 million; Year-end cash balance increased to $360 million
  • Net new business awards totaled $191 million in the quarter and $451 million for the full year
  • Contract awards related to the Company’s innovation products totaled $104 million in the quarter and $380 million for the full year

“Weak light vehicle production and commercial pressures in Asia continued to negatively impact our financial results in the fourth quarter,” said Jeffrey Edwards, chairman and CEO, Cooper Standard. “In addition, the UAW work stoppage in the United States and lower than planned volumes on certain important vehicle programs in North America further reduced sales and profits.  Despite these challenges, we were able to generate positive free cash flow in the quarter.

“As we look ahead in 2020, our focus will be on providing continued world-class service and quality products to our customers, driving further improvement in our cost structure and optimizing cash flow to further enhance our strong balance sheet,” Edwards added. “We believe the successful execution of our operating plans and longer term strategic initiatives will enable us to drive improved returns on invested capital going forward.”

The year-over-year change in fourth quarter and full year sales was primarily attributable to the sale of the Company’s Anti-Vibration Systems (AVS) business, unfavorable volume and mix, including the impact of the United Auto Workers (UAW) work stoppage in the U.S., customer price adjustments and foreign exchange, partially offset by incremental sales from acquisitions.

Net loss for the fourth quarter 2019 included restructuring charges related to plant closures and headcount reductions, impairment charges related to fixed assets, as well as pension settlement charges related to the purchase of a bulk annuity policy designed to de-risk pension obligations in the U.S. Adjusted net loss for the fourth quarter 2019 excludes these and other non-cash or non-operating items and their related tax impact.  The year-over-year change in adjusted net income (loss) for the fourth quarter was due largely to unfavorable volume and mix, including the impact of the UAW work stoppage in the U.S., customer price adjustments, general inflation, the sale of the Company’s AVS business and unfavorable foreign exchange, partially offset by improved operating efficiencies and other cost saving initiatives.

Please click here to view the full press release.

SOURCE: Cooper Standard

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