Northville, Michigan – Cooper Standard Holdings narrowed loss and improved sales by more than 50% in the second quarter of 2021, despite ‘volatile customer production and rising materials costs’.
Second quarter adjusted earnings (EBITDA) remained in the negative territory at $14.7 million, but up from negative earnings of $94 million reported in 2020.
Sales grew 56.7% year-on-year to $533 million, as net loss was more than halved to $63.6 million, Cooper Standard reported 4 Aug.
The US automotive components supplier said the improvement in sales and earnings were primarily attributable to the non-recurrence of Covid-related customer shutdowns and favourable foreign exchange.
However, the gains were partially offset by manufacturing shutdowns of customers due to the shortage of semiconductors.
Earnings, Cooper Standard said, was particularly affected by a $200 million negative effect of semiconductors’ shortage on sales and the divestiture of certain businesses in India and Europe in July 2020.
“Volatile customer production schedules and rising material costs significantly impacted our operating efficiency and results during the quarter,” said Jeffrey Edwards, chairman and CEO.
The company, he said, is “taking aggressive actions, including commercial negotiations with customers and suppliers, to mitigate these incremental costs.”
Based on current customer schedules, Edward said his company expected to leverage higher production volumes to drive improved financial results in the second half of the year.