In This Article:
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Revenue: $708.4 million, a decrease of 2.1% compared to Q2 2023.
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Gross Profit: $82.9 million or 11.7% of sales, up from $77.7 million or 10.7% in Q2 2023.
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Adjusted EBITDA: $50.9 million, compared to $47.9 million in Q2 2023.
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Net Loss: $76.2 million, compared to a net loss of $27.8 million in Q2 2023.
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Adjusted Net Loss: $11.3 million or $0.64 per diluted share, improved from $20 million or $1.15 per diluted share in Q2 2023.
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Capital Expenditures: $11.2 million or 1.6% of sales, down from $17.5 million or 2.4% of sales in Q2 2023.
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Cash Flow from Operations: Approximately $12 million used in Q2 2024.
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Total Liquidity: $267 million as of June 30, 2024.
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Net New Business Awards: $61 million in Q2 2024.
Release Date: August 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cooper-Standard Holdings Inc (NYSE:CPS) achieved a 97% green rating on customer scorecards for product quality and 96% for new program launches.
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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.
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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.
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CPS was awarded $61 million in net new business during the second quarter, reflecting strong demand for its innovative products and technologies.
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The company continues to be recognized for its sustainability efforts, being included in USA Today's list of America's climate leaders.
Negative Points
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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.
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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.
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The company faced ongoing inflation headwinds, particularly in energy and labor costs, which partially offset positive financial drivers.
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Unfavorable foreign exchange impacted both sales and operating costs, with a $15 million negative effect on adjusted EBITDA.
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Despite improvements, the macroeconomic environment, including lower light vehicle production estimates and inflationary pressures, continues to pose challenges to achieving financial targets.
Q & A Highlights
Q: On the restructuring actions, have they been completed? A: We are in the final stages. Most actions have been completed, and we expect to see a pickup of $20 million to $25 million in savings in the third and fourth quarters. We have a high level of confidence in this. - Jeffrey Edwards, CEO