Livonia, Michigan--Cooper-Standard Holdings Inc. reported a first-quarter net loss of $500,000 on 5.4-percent lower sales, as lower North American vehicle production and increased raw material costs converged.
Gross profits also fell 23.4 percent in the period to $68.4 million on the effects of "significantly" higher raw material costs, lower prices and lower unit volumes, the firm said.
Sales slipped to $469.5 million as business was down in all three operating segments: sealing systems, down 1.6 percent; fluid systems, down 6.9 percent; and NVH, down 17.4 percent.
Cooper-Standard, which was spun off from Cooper Tire & Rubber Co. last year, said its contracts with vehicle makers do not allow it to pass along higher raw materials costs, which lead to "significant pricing pressure."
The negative influences on profits were offset partially by favorable foreign currency gains, the firm said.
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