Cooper Standard sees "bright spots" in challenging second quarter

Northville, Michigan – Despite “unprecedented challenges” posed by the Covid-19 pandemic during the first half of 2020 year, Cooper Standard has seen “real bright spots” in the second quarter of 2020.

Over the six months to end of June, the US automotive supplier reported net loss of $134 million, against $145 million profits in 2019, on 39% lower sales at $995 million.

Adjusted earnings (EBITDA) stood at negative $85 million, down from $122 million in the first half of 2019.

Cooper Standard attributed the declines, primarily to customers idling operations in response to the Covid-19 pandemic, as well as other unfavourable volume and mix, primarily in North America and Europe.

Business was particularly impacted in the second quarter as the company’s automotive operations in Europe and North America were almost all closed from mid-March until late May or early June, according to chairman and CEO Jeffery Edwards. 

However, after more than two months of lost production, Edwards said the restart of operations has gone “extremely well.”

“All of our plants have now been re-opened and have begun ramping up production in alignment with customer demand,” he said.

In addition, Edwards said 'bright spots' could be seen in operations as the company delivered $21 million in cost savings through lean initiatives and improving operating efficiency.

For the first half, Cooper Standard cut costs by $37 million, according to the company boss. 

The Michigan-based supplier said it completed the previously announced closure of a manufacturing facility during the second quarter and was on track to close a second one later this year. 

The company did not disclose further details of the plants but said a technical facility has also been added to the list of planned closures in 2020. 

Overall, at the end of June, Cooper Standard’s production volumes globally were at approximately 70% of the levels that had been anticipated prior to the global pandemic, according to Edwards.