Cooper Standard posts higher earnings on improved volume/mix

Northville, Michigan – Cooper-Standard Holdings Inc. has seen a strong increase in annual earnings, as volume and mix trends improved over the course of 2023.

Adjusted earnings (EBITDA) quadrupled to $167 million (€154 million) during 2023, up from $38 million reported the year before.

Annual sales rose 11.5% compared to 2022 to $2.8 billion, Cooper Standard announced in a February results report.

Net loss was narrowed to $202 million, compared to a loss of $215 million reported the year before.

Cooper Standard linked the revenue increase primarily to improved volume and mix including “sustainable price adjustments”.

Higher sales were partially offset by unfavourable foreign exchange and the “deconsolidation or divestiture of non-core businesses”, the group noted.

Adjusted earnings improved due to “favourable volume and mix, as well as improved manufacturing efficiency and lower material costs.”

Net loss was further narrowed due to reduced asset impairment charges, and lower income tax expense, Cooper Standard added.

These positive factors were partially offset by higher wages, general inflation, unfavourable foreign exchange and higher incentive compensation.

Cooper Standard went on to note that it is: winning new awards; leveraging its engineering and manufacturing capabilities; and capitalising on positive trends associated with electric vehicles.

During the fourth quarter of 2023, the group received total net new business awards representing $86.3 million in incremental anticipated future annualised sales.

The total included $25.7 million in net new business awards on electric vehicle platforms.

For full-year 2023, net new business awards totalled $175.3 million, including $114.9 million in net new business awards on electric vehicle platforms.

"We continued to make strong improvements as a company in 2023,” said Jeffrey Edwards, chairman and CEO, Cooper Standard.

"We expect to build on the successes of 2023 to drive increasing value for all our stakeholders in 2024," he added.