New Business Models for Suppliers: Turning Challenges into Advantages - PowerPoint PPT Presentation

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New Business Models for Suppliers: Turning Challenges into Advantages

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  1. New Business Models for Suppliers:Turning Challenges into Advantages Jim McElya, President and CEO Cooper Standard Automotive January 18, 2006

  2. Cooper Standard AutomotiveWho We Are ($ in millions) Cooper-Standard Automotive LTM Sept. 05 sales: $1,844 LTM Sept. 05 Adjusted EBITDA: $202 13,269 employees 48 locations NVH Control • LTM Sept. 05 sales(1): $353 • % total: 18% • N.A. market position: #1 Fluid Handling • LTM Sept. 05 sales(1): $634 % total: 34% • Global market position: #3 Body Sealing • LTM Sept. 05 sales(1): $893 • % total: 48% • Global market position: #1 Direct, control, and transportfluids and vaporsthroughout 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

  3. Cooper Standard History Cooper Engineered Products of Cooper Tire Sales: $425MM Products: NVH, Sealing, Hose Acquired October 1999 Acquired January 2000 • Divestitures/Other • Holm Industries • Oliver Rubber • Winnsboro The Standard Products Company Sales: $1,100MM Products: NVH, Sealing Siebe Automotive Sales: $400MM Products: Fluid Handling • Exited Facilities • Estover • Langage • Cleveland CSA Division of CTR Sold December 2004 Successful Integrations Brand-name Global OEM Supplier

  4. Good Year forSales & Profits 52Plants 18,000Employees The Future Looked Brightfor Cooper Standard Automotive The Year 2000Environment for Success was Right

  5. Competition heats up in Chinese auto market… US auto sales headed for 2nd best month ever… Toyota expects to gain U.S. market share in 2000… Detroit Automakers posting healthy earnings… Mitsubishi and DaimlerChrysler agree to alliance… Ford says 2000 will set a record… Ford to spin off Visteon… DaimlerChrysler expects to top 2000 revenue goal… Automotive trade exchange to be called Covisint… Supplier consolidation continues at rapid pace… The Future Looked Brightfor the Industry The Year 2000Environment for Success was Right

  6. Federal Mogul files for bankruptcy… 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… Ford slashes production, warns of lower earnings… Rougher roads lie ahead for Japan’s automakers… Industry Challenges Environment for Success was Volatile

  7. $1.5 BillionUSD in Sales $1.8B LTM 9/30/05 USD Sales 52Plants 40 Plants 18,500Employees 13,250Employees What Have We Done Over Time? 1/3 of CSA Employees in LCM Countries MexicoCzech RepublicPoland Moved More Productsto LCM Countries Expanded into China 2000 2005

  8. $1,385.9 M USD Sales thru Q3 of ’05 $202M USD LTM 9/30/05 Adjusted EBITDA Solid Results; Others struggled Results The Year 2005

  9. Acquired RubberHose Operation from Gates Equity Investment in Guyoung Tech Co. Honored with Various Industry & Customer Awards Announced Acquisition Results Fluid Handling Systems Division The Year 2005

  10. Achieved Increased Profits andAttained Status as a Global Player in Industry Summary of CSA Advantages Examine old business model Implement low-cost business model Replace Expand product lines & systems capabilities Eliminate Excess capacity Grow Eliminate Move operations to low-cost manufacturing countries Deal with material challenges & pricing issues Relocate Negotiate