Cooper Standard earnings rise 33% on higher volumes, pricing

Northville, Michigan – Cooper Standard has reported a 33% year-on-year increase in first half earnings (adjusted EBITDA), helped by higher volumes, price adjustments and cost-savings.

Adjusted earnings for the first six months of the year came in at $80.3 million (€73.5 million) despite a marginal decline in sales to $1.38 billion, the US automotive supplier reported 1 Aug.

In the second quarter, adjusted earnings grew marginally to $51 million, while sales were down 20% year-on-year at $708 million.

Second quarter adjusted earnings were impacted by the group's divestment of its 'technical rubber' business unit last year, and unfavourable foreign exchange trends.

These effects, said Cooper Standard, were offset by “favourable volume and mix, sustainable price adjustments, and savings generated from lean manufacturing and purchasing initiatives.”

During the second quarter, earnings at Cooper Standard's recently formed 'fluid handling systems' business unit grew 19% year-on-year to $16 million on sales up 1.7% at $5.5 billion.

By contrast, the US group's 'sealing systems' division posted a marginal decline in adjusted earnings, while sales at the unit fell 2%.

Cooper Standard went on to report net new business awards worth $60.6 million 'in anticipated future annualised sales' during the second quarter.

Orders included $25.1 million on hybrid vehicle platforms and $37.2 million on battery electric vehicles, while internal combustion engine platforms saw a $1.7-million decline in awards.

In addition, chairman and CEO Jeffrey Edwards said an "aggressive” cost-optimisation initiative during the quarter was set to drive “significant savings beginning with the third quarter.”

As a result, the group anticipates $20 million of realised savings in the second half of 2024, and the full annualised savings of $45 million in 2025.

As for the market outlook, Cooper Standard said projections for full-year global light vehicle production in 2024 have been softening since the beginning of the year.

While it expects growth driven by enhanced commercial agreements, headwinds from inflation and unfavourable foreign exchange are likely to persist.