Cooper Standard narrows loss, lowers full-year guidance

Northville, Michigan – US automotive supplier Cooper Standard significantly narrowed loss during the third quarter of 2022, due mainly to improved cost structure and enhanced commercial agreements.

Net loss stood at $32.7 million for the three months to end of September, up from last year’s loss of $123 million. Adjusted earnings (EBITDA) came in at $20 million, compared to a negative $34 million development last year.

Quarterly sales grew 25% to $658 million, reflecting “favourable” volume and mix as well as recoveries of material cost inflation through price adjustments.

These factors, reported Cooper Standard, were partially offset by negative foreign exchange impact.

“We were able to leverage our improving cost structure, enhanced commercial agreements and higher year-over-year industry production levels to drive positive results in the quarter,” said Jeffrey Edwards, chairman and CEO.

However, he went on to note that OEM production schedules “remain erratic”, with actual volumes “falling well short of” industry forecasts and customers' own releases.

Despite the continuing challenge, Edwards said Cooper Standard expected to deliver further operational improvements and margin expansion through the remainder of the year.

During the three-month period, Cooper Standard said it received net new business awards representing $66 million in incremental anticipated future annualised sales.

Of the amount, $27 million was on electric vehicle platforms.

For the full year, the Northville group lowered previously announced guidance, now expecting sales to come in at $2.45-$2.55 billion, compared to the previous forecast of $2.5-$2.7 billion.

Adjusted earnings are set to come in between $45 and $50 million, down from the previous guidance of $50-$60 million.

“Industry projections for global light vehicle production growth, while still positive, have moderated over the past three months,” said the supplier.

Cooper Standard said it was lowering its outlook based on the industry projections, macroeconomic conditions, current customer production schedules and the its results to date.