Cooper Standard narrows loss as sales increase 20%

Northville, Michigan – Cooper Standard has narrowed losses in the second quarter of 2023, helped by improved pricing for its products and stronger volumes.

The US automotive and industrial parts manufacturer reported a loss of $27.8 million (€25 million), compared to a $33.2 million loss in the second quarter of 2022.

The year-over-year improvement was primarily due to improved volume and mix and favourable price adjustments, Cooper Standard reported 3 Aug.

The gains, it added, were partially offset by higher interest expense, continuing rises in labour and energy costs, and unfavourable currency movements.

Sales for the three months to 30 June rose 19.4% to $724 million, primarily due to “favourable volume and mix” as well as price adjustments to recover materials-cost inflation.

Adjusted earnings (EBITDA) for the period stood at $47.9 million compared to a $10.4 million negative development reported in the second quarter of 2022.

Northville-based Cooper Standard linked the earnings gains to higher sales, as well as “savings generated from lean manufacturing and purchasing initiatives.”

The results reflect "improved and more stable production volumes, and the continuing implementation of our enhanced commercial agreements," said Jeffrey Edwards, chairman and CEO.

And, the positive trends and margin improvements are expected to continue through the second half of the year, according to Edwards.

This, he added, will put the group “on track to achieve full-year results in line with our initial 2023 guidance."

Cooper Standard expects full year revenue to come in at $2.6-2.8 billion, with adjusted earnings of $150-175 million.