Cooper-Standard Holdings Inc. reported results for the second quarter of 2022, highlighted by sales totaling $605.9 million, an increase of 13.6% over the second quarter of 2021.

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“We began to see some improvement in global market conditions and production levels in the last four weeks of the quarter,” said Jeffrey Edwards, president and chief executive officer of Cooper Standard. “With the resumption of production in China, European markets and operations beginning to stabilize following the war-related disruptions in Ukraine and the growing recovery of inflation at our customers, we have seen adjusted EBITDA margins and cash flow turning positive in June With further improvements in global production volume expected for the remainder of the year, combined with continued cost reduction initiatives and the anticipated additional positive impact of our enhanced trade agreements , we continue to expect to deliver adjusted EBITDA for the full year in line with our initial guidance.

Cooper-Standard said the year-over-year increase in second-quarter sales was primarily due to favorable volume and mix as well as realized recoveries from material cost inflation, which are reflected in price adjustments. These were partially offset by currency effects and the deconsolidation of a joint venture in the Asia-Pacific region.

Net loss for the second quarter of 2022 was ($33.2) million, including a gain on sale of fixed assets of $33.4 million, restructuring charges of $3.5 million and other special items. Net loss for the second quarter of 2021 was ($63.6) million, including restructuring charges of $11.6 million and other special items. Adjusted net loss, which excludes restructuring, other special items and their related tax impact, was ($58.5) million in the second quarter of 2022, compared to ($51.1) million in the second quarter of 2021. The year-over-year change was primarily due to continued increases in raw material and material costs, wages, general inflation and increased expense income taxes. These were partially offset by favorable volume and mix, manufacturing efficiencies and the positive impact of our enhanced trade agreements and significant cost inflation recovery initiatives, the company said.

Adjusted net loss, adjusted EBITDA and adjusted loss per diluted share are non-GAAP measures. Reconciliations to the most directly comparable financial measures, calculated and presented in accordance with United States generally accepted accounting principles (“US GAAP”), are provided in the attached supplemental schedules.

Automotive New Business Awards

The company says it continues to leverage its world-class engineering and manufacturing capabilities, innovation programs, and reputation for quality and service to win new business awards with its customers. During the second quarter of 2022, the Company received net new business awards representing approximately $57 million in expected incremental future annualized sales. Notably, net new business awards for the quarter included $39 million on electric vehicle platforms. Since the start of 2020, the company has received net new commercial awards on electric vehicle platforms totaling more than $250 million in expected incremental annualized sales.

Cost recovery initiatives

The company adds that it continues to work with its customers to recover additional costs associated with rising commodity prices, rising wages, general inflation and other market challenges. Through a combination of expanded indexing arrangements and other business enhancements, the Company now expects to achieve significant cost recoveries at a rate exceeding the historical range of 40-60%. The extended index agreements have been established to cover a large majority of the Company’s revenue base. These agreements cover both petroleum-based materials and metals and should significantly reduce the Company’s exposure to commodity price volatility in the future. In addition, some of the agreements provide for the retroactive recovery of a portion of cost of goods increases already incurred.

Cash and cash

As of June 30, 2022, Cooper Standard said it had cash and cash equivalents totaling $250.5 million. Total liquidity, including availability under the Company’s amended senior asset-based revolving credit facility, was $406.7 million at the end of the second quarter.

Based on current expectations for light vehicle production and customer demand for our products, the Company expects its current strong cash balance and access to flexible credit facilities to provide sufficient resources to support ongoing operations and the execution of strategic initiatives planned for the foreseeable future.


Current customer schedules and industry forecasts call for improved production volumes in the second half of 2022. The planned ramp-up, however, remains dependent on global supply chain capacity and efficiency and the availability of key components and products.

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