Cooper-Standard earnings up 52% despite dip in sales

Northville, Michigan – Cooper-Standard Holdings Inc. has posted a 51.7% year-on-year increase in operating income to $69.8 million (€67.1 million), on 2024 sales of $2.73 billion – 3.0% below the prior-year level.

The results included a $36.2-million increase in fourth quarter operating income versus the prior-year final quarter to $31.7 million, on sales down 1.9% year-on-year to $660.8 million.

Adjusted earnings (EBITDA) for the full-year came in at $180.7 million, or 6.6% of sales, representing an increase of $13.6 million versus 2023, according to Cooper-Standard’s report issued 13 Feb.

Cooper-Standard linked the sales declines to unfavourable volume and mix, including price adjustments, deconsolidation/divesture of non-core business and unfavourable foreign exchange.

The improved earnings were attributed to reversal of deferred tax valuation allowances and non-recurrence of refinancing and debt extinguishment expense.

EBITDA was also reinforced by lean manufacturing savings, purchasing initiatives, 'restructured' savings, normalised incentive compensation and lower interest expense.

Negative factors impacting earnings included unfavourable foreign exchange, volume and mix, plus labour costs and inflation levels.

In 2024, the company received total net new business awards representing $181.4 million in incremental anticipated future annualised sales – including $105.8 million  on electric vehicle platforms.

"We were able to deliver profit, cash flow and margin improvement... despite lower production and foreign exchange headwinds," said Jeffrey Edwards, chairman and CEO, Cooper Standard.

An organisational restructure implemented at the start of 2024 “continues to drive significant efficiencies and cost savings and we expect to continue the momentum... in 2025," added Edwards.