Q2 2024 Cooper-Standard Holdings Inc Earnings Call Transcript
Key Points
- Cooper-Standard Holdings Inc (CPS) achieved a 97% green rating on customer scorecards for product quality and 96% for new program launches.
- The company reported a significant improvement in safety performance, with a total incident rate of 0.29, well below the world-class benchmark of 0.47.
- Cost optimization efforts resulted in $16 million in savings through lean initiatives, contributing to a 100 basis point improvement in gross profit margin compared to the previous year.
- CPS was awarded $61 million in net new business during the second quarter, reflecting strong demand for its innovative products and technologies.
- The company continues to be recognized for its sustainability efforts, being included in USA Today's list of America's climate leaders.
- Second quarter sales decreased by 2.1% compared to the same period last year, primarily due to the divestiture of the Technical Rubber business and unfavorable foreign exchange.
- CPS reported a net loss of $76.2 million in the second quarter, significantly higher than the $27.8 million loss in the same quarter of 2023.
- The company faced ongoing inflation headwinds, particularly in energy and labor costs, which partially offset positive financial drivers.
- Unfavorable foreign exchange impacted both sales and operating costs, with a $15 million negative effect on adjusted EBITDA.
- Despite improvements, the macroeconomic environment, including lower light vehicle production estimates and inflationary pressures, continues to pose challenges to achieving financial targets.
Good morning, ladies and gentlemen, and welcome to the Cooper-Standard second quarter 2024 earnings conference call. During the presentation, all participants will be in a listen-only mode. Following company prepared comments, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference call is being recorded, and the webcast will be available on the Cooper-Standard website for replay later today.
I would now like to turn the call over to Roger Hendriksen, Director of Investor Relations. Please go ahead.
Thanks, Julie, and good morning, everyone. Thanks for joining our call this morning. The members of our leadership team who will be speaking with you on the call this morning are Jeff Edwards, Chairman and Chief Executive Officer; and Jon Banas, Executive Vice President and Chief Financial Officer.
Before we begin, I need to remind you that this presentation contains forward-looking statements. While they are made based on
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