Cooper Standard upgrades forecast on Q3 return-to-profit

Northville, Michigan – Cooper Standard has reported a strong third quarter, the automotive parts supplier posting an operating profit of $54.6 million, against a prior-year-period loss of $10.0 million.

Adjusted earnings (EBITDA) nearly tripled to $79.1 million, up from $20.5 million last year, on 12% higher sales of $736 million, Cooper Standard also announced 2 Nov.

With global light vehicle production expected to increase in the fourth quarter – despite ongoing strikes in North America – Cooper Standard upgraded its full-year guidance.

As a result, the Michigan-based group anticipates earnings to come between $165 million and $180 million, up from earlier estimate of $150-175 million.

Cooper Standard said it expected “to continue leveraging incremental production volumes to drive further growth and operating efficiencies.”

In addition, the group aims to conclude “certain remaining commercial negotiations” in the fourth quarter towards achieving positive price adjustments.

Chairman and CEO Jeffrey Edwards linked Cooper Standard's third-quarter gains to “higher production volume, operating efficiency and further implementation of enhanced commercial agreements.”

Investments in “customer-focused technology and innovation”, he added, have been key to recent operational improvements.

Cooper Standard went on to link its higher sales to “favourable volume and mix, sustainable price adjustments, inflation recoveries, and favourable foreign exchange.”

These were partially offset by the “deconsolidation or divestiture” of non-core businesses.

This included the sale of its European technical rubber products business and the divestment of a controlling equity interest in a JV in the Asia Pacific region.

During the third quarter, the group received new business awards representing $34.4 million on new electric vehicle platforms.

For the first nine months of 2023, new business awards on electric vehicle platforms totalled $89.2 million and total net new business awards were $89.0 million.