new business models for suppliers: turning challenges into advantages jim mcelya, president and ceo...
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New Business Models for Suppliers:Turning Challenges into AdvantagesNew Business Models for Suppliers:Turning Challenges into Advantages
Jim McElya, President and CEOCooper Standard Automotive
January 18, 2006
Jim McElya, President and CEOCooper Standard Automotive
January 18, 2006
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Cooper Standard AutomotiveWho We Are
Cooper Standard AutomotiveWho We Are
Cooper-Standard Automotive
LTM Sept. 05 sales: $1,844
LTM Sept. 05 Adjusted EBITDA: $202
13,269 employees
48 locations
Fluid Handling• LTM Sept. 05 sales(1):$634
% total: 34%• Global market position: #3
($ in millions)
Body Sealing• LTM Sept. 05 sales(1): $893• % total: 48%• Global market position: #1
Direct, control, and transportfluids and vapors
throughout a vehicle
Seal the doors, windows, and other parts of the vehicle from water leakage and wind noise
Control and isolate noise and vibration in a vehicle and improve
ride and handling
(1) Excludes corporate eliminations
NVH Control• LTM Sept. 05 sales(1): $353• % total: 18%• N.A. market position: #1
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Cooper Standard HistoryCooper Standard History
The Standard Products CompanyThe Standard Products Company
Sales: Sales: $1,100MM$1,100MM
Products:Products: NVH, SealingNVH, Sealing
The Standard Products CompanyThe Standard Products Company
Sales: Sales: $1,100MM$1,100MM
Products:Products: NVH, SealingNVH, Sealing
Siebe AutomotiveSiebe Automotive
Sales: Sales: $400MM$400MM
Products:Products: Fluid HandlingFluid Handling
Siebe AutomotiveSiebe Automotive
Sales: Sales: $400MM$400MM
Products:Products: Fluid HandlingFluid Handling
Acquired October 1999
Acquired January 2000
Divestitures/OtherDivestitures/Other
• Holm IndustriesHolm Industries
• Oliver RubberOliver Rubber
• WinnsboroWinnsboro
Divestitures/OtherDivestitures/Other
• Holm IndustriesHolm Industries
• Oliver RubberOliver Rubber
• WinnsboroWinnsboro
Cooper Engineered Products of Cooper TireCooper Engineered Products of Cooper Tire
Sales: Sales: $425MM$425MM
Products:Products: NVH, Sealing, HoseNVH, Sealing, Hose
Cooper Engineered Products of Cooper TireCooper Engineered Products of Cooper Tire
Sales: Sales: $425MM$425MM
Products:Products: NVH, Sealing, HoseNVH, Sealing, Hose
CSA Division of CTRCSA Division of CTRCSA Division of CTRCSA Division of CTRExited FacilitiesExited Facilities
• EstoverEstover
• LangageLangage
• ClevelandCleveland
Exited FacilitiesExited Facilities
• EstoverEstover
• LangageLangage
• ClevelandCleveland
Sold December 2004
Successful Integrations Brand-name Global OEM Supplier
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The Future Looked Brightfor Cooper Standard Automotive
The Future Looked Brightfor Cooper Standard Automotive
Good Year forSales & Profits
52Plants
18,000Employees
The Year 2000Environment for Success was Right
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The Future Looked Brightfor the Industry
The Future Looked Brightfor the Industry
The Year 2000Environment for Success was Right
US auto sales headed for 2nd best month ever…
Detroit Automakers posting healthy
earnings…Toyota expects to gain U.S.
market share in 2000…Ford says 2000 will set a
record…
Mitsubishi and DaimlerChrysler agree to alliance…
Ford to spin off Visteon…
DaimlerChrysler expects to top 2000 revenue goal…
Supplier consolidation continues at rapid pace…
Automotive trade exchange to be called Covisint…
Competition heats up in Chinese auto market…
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Industry ChallengesIndustry Challenges
Environment for Success was Volatile
Foreign Automakers boost N.A. market share…
Suppliers face tough times ahead…
(9/11) U.S. Automakers suspend production…
0% financing brings back buyers…
U.S. auto-parts makers resist more price reductions…
Big suppliers reject DCX 5% demand…
GM considers making more European cuts…
Federal Mogul files for bankruptcy…
Ford slashes production, warns of lower earnings…
Rougher roads lie ahead for Japan’s automakers…
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What Have We Done Over Time?What Have We Done Over Time?
18,500Employees
Moved More Productsto LCM Countries
MexicoCzech RepublicPoland
Expanded into China
2000 2005
52Plants
40Plants
13,250Employees
1/3 of CSA Employees in LCM Countries
1/3 of CSA Employees in LCM Countries
$1.5 BillionUSD in Sales
$1.8B LTM 9/30/05USD Sales
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ResultsResults
$1,385.9 M USD Sales thru Q3 of ’05
$202M USDLTM 9/30/05
Adjusted EBITDA
Solid Results;Others struggled
The Year 2005
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ResultsResults
The Year 2005
Acquired RubberHose Operation from
Gates
Equity Investment in Guyoung Tech
Co.
Honored with Various Industry & Customer Awards
Announced Acquisition
Fluid Handling Systems Division
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Implement low-cost business model
Eliminate Excess capacity
Deal with material challenges &
pricing issues
Expand product lines & systems capabilities
Move operations to low-cost manufacturing countries
Achieved Increased Profits andAttained Status as a Global Player in Industry
Examine old business model
Summary of CSA AdvantagesSummary of CSA Advantages
Replace
Elim
inate
Negot
iate
Relocate
Gro
w