Cooper-Standard Holdings Reports Decline in Financial Performance for Q3 and Nine Months of 2024

Cooper-Standard Holdings Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated sales of $685.4 million, a decrease of 6.9% from $736.0 million in Q3 2023. For the nine months, sales totaled $2.07 billion, down 3.4% from $2.14 billion in the prior year. The decline in revenue was attributed to divestitures, unfavorable volume and mix, and negative foreign exchange impacts.

Gross profit for Q3 2024 was $76.3 million, down from $106.5 million in Q3 2023, reflecting a gross profit margin of 11.1%, compared to 14.5% in the prior year. For the nine-month period, gross profit decreased to $220.9 million from $226.1 million. Operating income also fell significantly, with Q3 2024 reporting $23.5 million compared to $52.7 million in Q3 2023. The net loss for Q3 2024 was $(10.9) million, a stark contrast to the net income of $11.4 million in the same quarter of 2023. For the nine months, the net loss improved to $(118.4) million from $(148.1) million in 2023.

The company’s restructuring efforts, initiated in May 2024, resulted in total restructuring expenses of $20.4 million for the nine months ended September 30, 2024. These efforts are expected to yield annualized savings of $40 million to $45 million. The restructuring charges for the nine months included $12.3 million for the Sealing Systems segment and $2.8 million for Fluid Handling Systems.

As of September 30, 2024, Cooper-Standard reported total assets of $1.80 billion, down from $1.87 billion at the end of 2023. Total liabilities remained stable at approximately $1.96 billion. The company’s cash and cash equivalents decreased to $107.7 million from $154.8 million at the end of 2023.

In terms of segment performance, the Sealing Systems segment generated external sales of $353.4 million in Q3 2024, while the Fluid Handling Systems segment reported $313.7 million. Both segments experienced declines in sales compared to the previous year, attributed to lower customer volumes and unfavorable foreign currency exchange impacts.

Cooper-Standard's strategic focus includes optimizing asset allocation and enhancing operational efficiency through its newly realigned reportable segments, effective January 1, 2024. The company continues to navigate challenges in the automotive industry, including supply chain disruptions and fluctuating raw material costs, while implementing cost optimization initiatives to mitigate inflationary pressures.