Cooper Standard earnings lift as sales strengthen in first quarter

Northville, Michigan - Cooper-Standard Holdings has seen a significant leap in first quarter earnings despite doubling net loss for the three months to end of March.

Sales for the three-month period rose 11.3% to $682 million (€618 million), on stronger volumes and mix as well as recovery of material-cost inflation via price adjustments.

Adjusted earnings (EBITDA) increased from $100,000 in the first quarter of 2022 to $12.5 million this year, with earnings margin up 180 basis points, the company said 4 May.

The gains were linked to improved volume and mix, stronger pricing and savings generated from lean manufacturing and purchasing initiatives.

These were partially offset by continuing inflationary pressures, including higher labour and energy costs, and unfavourable foreign exchange.

During the first quarter, Cooper Standard said its automotive business received net new-business awards on electric vehicle platforms with a value of $18 million.

Meanwhile, Cooper Standard’s net loss reached $130.4 million, compared to a loss of $61 million reported during the first three months of 2022.

The Michigan-based group linked the loss to “refinancing and extinguishment of debt,” as well as restructuring charges of $2.4 million and other special items.

"We made good progress in our inflation recovery initiatives and commercial negotiations with our customers during the quarter," said Jeffrey Edwards, chairman and CEO.

The US part maker expects further 'inflation recovery', price adjustments and increasing production volume to drive improved results over the rest of 2023.