The following is a summary of the Cooper-Standard Holdings Inc. (CPS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Cooper-Standard Holdings reported Q1 2024 sales of $676.4 million, a decrease of 0.9% due to divestiture activities.
Gross profit for the first quarter was $61.6 million or 9.1% of sales; an improvement from first quarter 2023's gross profit of $41.8 million or 6.1% of sales.
The company reported an adjusted EBITDA of $29.3 million, up from $12.5 million in the first quarter of the previous year.
Despite a net loss of $31.7 million, this is an improvement from Q1 2023's net loss of $130.4 million.
Expected cost savings lie between $20 million to $25 million due to optimization plans, which could intensify to $40 million to $45 million on a full-year annualised basis next year.
Business Progress:
Cooper-Standard marked 97% green on customer scorecards for product quality and 96% green for new program launches.
Through lean initiatives and cost-saving programs, the company saved $19 million.
Achieving $66 million in net new business awards within the first 3 months of 2024 evidences Cooper-Standard's appealing business approach.
The company won Supplier of the Year for General Motors for the seventh consecutive year showcasing its reliable and high-quality supply.
By redefining the operational management structure from a regional to product basis, Cooper-Standard hopes to streamline efficiency and achieve double-digit EBITDA margins by 2025 end.
With initial 2024 revenue projections unmoved, the company anticipates to outpace the markets they serve in automotive revenues.
A company-wide refinancing effort will be implemented in the following year, upon favorable conditions.
By 2025 end, the company aims to revert to their targeted profitability by adjusting its business model.
More details: Cooper-Standard IR
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