Northville, Michigan – Cooper Standard has narrowed net loss in the first quarter of 2021 by 70% to $34 million, helped by improved manufacturing efficiencies, lower selling, administrative and engineering (SGA&E) expense and favourable volume and mix.
Adjusted earnings (EBITDA) for the first three months of the year rose 366% to $38.5 million (€31.5 million), on 2.1% higher sales of $670 million, the US automotive supplier reported 6 May.
Cooper Standard, however, narrowly missed its operating plan targets, due mainly to the significant microchip-related production cuts and supply chain disruptions that affected its market, said Jeffrey Edwards, chairman and CEO, Cooper Standard.
While headwinds “are continuing and have intensified” in the second quarter, Edwards said he anticipated automotive production to rebound in the second half of the year.
On the full year outlook, Cooper Standard said the ongoing global microchip shortage had caused significant delays and disruption of automotive production around the world.
“As a result, our largest customers have announced significant reductions of their production schedules for certain key vehicles in the second quarter of 2021,” it added.
In the meantime, with demand remaining strong for new light vehicles, Cooper Standard said it expected production to ramp up “quickly” once microchips become more readily available.
“Despite ongoing uncertainty and incremental commodity headwinds, the company still expects to deliver full-year results within the ranges of our original guidance,” it noted.
Cooper Standard announced 17 Feb that it expected sales and adjusted earnings to return to 2019 levels this year at $2.5-$2.7 billion and $180-$200 million respectively.