On August 1, 2024, Cooper-Standard Holdings Inc (CPS, Financial) released its 8-K filing for the second quarter of 2024. Cooper-Standard Holdings Inc is a supplier of rubber and resin products for the automotive industry, producing rubber and plastic sealings, fuel and brake lines, fluid transfer hoses, and anti-vibration systems. The company serves major customers such as Ford, GM, FCA, Peugeot Citroen, and Volkswagen.
Performance Overview
Cooper-Standard Holdings Inc (CPS, Financial) reported a gross profit of $82.9 million for Q2 2024, marking a 6.7% increase compared to the same period in 2023. However, the company posted a net loss of $76.2 million, or $(4.34) per diluted share, primarily due to a one-time non-cash pension settlement charge and restructuring expenses. Adjusted net loss improved by 43.5% year-over-year to $11.3 million, or $(0.64) per diluted share.
Financial Achievements
Despite the challenges, Cooper-Standard Holdings Inc (CPS, Financial) achieved an adjusted EBITDA of $50.9 million, representing 7.2% of sales and a 6.2% increase from Q2 2023. The company also secured net new business awards totaling $60.6 million, including significant awards in hybrid and battery electric vehicle platforms.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Sales | $708.4 million | $723.7 million |
| Net Loss | $(76.2) million | $(27.8) million |
| Adjusted Net Loss | $(11.3) million | $(20.0) million |
| Adjusted EBITDA | $50.9 million | $47.9 million |
Segment Performance
Cooper-Standard Holdings Inc (CPS, Financial) realigned its operating management structure at the beginning of 2024, reporting financial results across two product line segments: Sealing Systems and Fluid Handling Systems. Sealing Systems reported sales of $364.9 million, while Fluid Handling Systems reported $322.7 million in sales for Q2 2024.
Cash and Liquidity
As of June 30, 2024, the company had cash and cash equivalents totaling $93.8 million, with total liquidity of $266.5 million. Cooper-Standard Holdings Inc (CPS, Financial) believes it has sufficient financial resources to support ongoing operations and strategic initiatives.
Outlook
Despite a softening outlook for global light vehicle production, Cooper-Standard Holdings Inc (CPS, Financial) expects its aggressive cost optimization initiatives to drive significant savings and improve profitability in the second half of 2024. The company has updated its full-year guidance, projecting sales between $2.7 billion and $2.8 billion and adjusted EBITDA between $180 million and $200 million.
"Continuing strong performance in operations, quality, delivery, and safety during the second quarter helped drive higher gross profit and adjusted EBITDA margins," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "We anticipate approximately $20 million of realized savings in the second half of 2024, and the full annualized savings of $45 million in 2025, significantly improving our outlook for future profitability and cash flow."
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Cooper-Standard Holdings Inc for further details.
