Novi, Michigan – Cooper Standard has seen sharp declines in sales and earnings (adjusted EBITDA) for the first half of 2019, due mainly to weak production volume and mix in China and Europe.
Cooper Standard reports 46% earnings fall, lowers forecast
Earnings for the six months to end of June fell 45.9% from $230.5 million (€210 million) to $124.5 million, on 13.2% lower sales at $1.6 billion, the automotive supplier announced in August.
The company attributed the decline in revenue primarily to the sale of the company's Anti-vibration systems (AVS) business, unfavourable volume and mix, and foreign exchange.
"Our results for the quarter were once again negatively impacted by continuing weak production volume and mix in China and Europe, as well as the slower than expected ramp up of an important new vehicle platform in North America," said Jeffrey Edwards, chairman and CEO, Cooper Standard.
Looking ahead, Edwards said he expected the challenging market dynamics to continue “at least through the end of the year.”
As a result, Cooper Standard revised down its full-year outlook.
The company has lowered sales forecast from $3.2-$3.4 billion to $3.0-$3.2 billion for the full year. Adjusted EBITDA has been revised down to $270-$300 million, from the previous forecast of $300-$340 million.
According to Edwards, Cooper Standard is mitigating the headwinds by accelerating planned restructuring and further streamlining the business.