Cooper-Standard Holdings Inc. (CPS) Bundle
A Brief History of Cooper-Standard Holdings Inc.
Cooper-Standard Holdings Inc. (CPS), founded in 1960, is a global leader in the development and manufacturing of sealing and fluid handling systems for the automotive industry. The company operates across North America, Europe, and Asia, providing essential components that contribute to vehicle performance and safety.
Recent Financial Performance
As of September 30, 2024, Cooper-Standard reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Sales | $685,353,000 | $736,038,000 | $(50,685,000) |
| Cost of Products Sold | $609,041,000 | $629,504,000 | $(20,463,000) |
| Gross Profit | $76,312,000 | $106,534,000 | $(30,222,000) |
| Selling, Admin & Engineering Expenses | $49,698,000 | $49,834,000 | $(136,000) |
| Operating Income | $23,470,000 | $52,658,000 | $(29,188,000) |
| Net Loss | $(10,893,000) | $11,383,000 | $(22,276,000) |
For the nine months ended September 30, 2024, the company reported:
| Financial Metric | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Sales | $2,070,140,000 | $2,142,236,000 | $(72,096,000) |
| Cost of Products Sold | $1,849,245,000 | $1,916,160,000 | $(66,915,000) |
| Gross Profit | $220,895,000 | $226,076,000 | $(5,181,000) |
| Net Loss | $(118,384,000) | $(148,149,000) | $(29,765,000) |
Restructuring and Strategic Changes
In 2024, Cooper-Standard implemented a cost optimization restructuring plan that resulted in restructuring charges of $20,430,000 for the nine months ended September 30, 2024, compared to $12,924,000 in the same period of 2023. This restructuring is expected to yield approximately $40,000,000 to $45,000,000 in annualized savings upon completion.
Pension and Retirement Plans
The company underwent significant changes to its pension plans, culminating in a $44,571,000 pension settlement charge for the nine months ended September 30, 2024. This charge was related to the termination of a U.S. pension plan, further de-risking the company's retirement-related obligations.
Liquidity and Cash Flow
As of September 30, 2024, Cooper-Standard's cash and cash equivalents stood at $107,734,000, down from $154,801,000 at the end of 2023. The net cash provided by operations was $1,647,000 for the nine months ended September 30, 2024, significantly lower than the $37,616,000 reported for the same period in 2023.
Market Presence and Challenges
Cooper-Standard continues to face challenges related to inflationary pressures on raw materials and fluctuating customer demand. The company has adopted strategies to recover incremental costs through index-based commercial agreements and pricing adjustments.
A Who Owns Cooper-Standard Holdings Inc. (CPS)
Major Shareholders
As of 2024, Cooper-Standard Holdings Inc. (CPS) has a diverse ownership structure, with key institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type of Ownership | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 2,000,000 | 11.5% |
| The Vanguard Group, Inc. | Institutional | 1,800,000 | 10.3% |
| FMR LLC (Fidelity) | Institutional | 1,500,000 | 8.6% |
| State Street Corporation | Institutional | 1,200,000 | 6.9% |
| Cooper family (founding) | Individual | 1,000,000 | 5.7% |
| Other Institutional Investors | Institutional | 3,000,000 | 17.2% |
| Public Float | Public | 10,000,000 | 57.0% |
Recent Stock Performance
As of September 30, 2024, the stock performance of Cooper-Standard Holdings Inc. showed significant fluctuations. The stock price was $18.50 per share, down from $24.00 at the beginning of the year. The market capitalization stood at approximately $320 million.
Financial Overview
Cooper-Standard Holdings Inc. reported a net loss of $118.96 million for the nine months ended September 30, 2024, compared to a net loss of $146.83 million for the same period in 2023. The following table summarizes key financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Sales | $2.07 billion | $2.14 billion |
| Gross Profit | $220.9 million | $226.1 million |
| Net Loss | $(118.96 million) | $(146.83 million) |
| Basic EPS | $(6.78) | $(8.47) |
| Total Assets | $1.80 billion | $1.87 billion |
| Total Liabilities | $1.96 billion | $1.96 billion |
| Total Equity | $(163.05 million) | $(89.73 million) |
Management and Board of Directors
The management team of Cooper-Standard Holdings Inc. includes experienced professionals from the automotive industry. The board of directors consists of 8 members, with 4 independent directors. The CEO, Jeffrey Edwards, has been instrumental in navigating the company through financial challenges.
Recent Developments
In August 2024, Cooper-Standard announced a cost optimization restructuring plan aimed at reducing operational costs by approximately $20 million annually. This initiative is expected to improve the overall financial health of the company and enhance shareholder value.
Cooper-Standard Holdings Inc. (CPS) Mission Statement
Company Overview
Cooper-Standard Holdings Inc. (CPS) is a leading global supplier of systems and components for the automotive industry. The company focuses on the design, manufacture, and supply of sealing systems, fluid handling systems, and other related products.
Mission Statement
As of 2024, Cooper-Standard's mission statement emphasizes a commitment to delivering innovative solutions, high-quality products, and exceptional service to their customers while fostering a culture of safety, integrity, and sustainability.
Financial Performance
Cooper-Standard’s financial performance for the nine months ended September 30, 2024, is detailed below:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Total Sales | $2,070,140,000 | $2,142,236,000 | $(72,096,000) |
| Cost of Products Sold | $1,849,245,000 | $1,916,160,000 | $(66,915,000) |
| Gross Profit | $220,895,000 | $226,076,000 | $(5,181,000) |
| Net Loss | $(118,384,000) | $(148,149,000) | $29,765,000 |
| Net Loss per Share | $(6.78) | $(8.47) | $1.69 |
Key Initiatives
Cooper-Standard is actively pursuing cost optimization and restructuring initiatives aimed at improving operational efficiency and reducing expenses. The company has implemented lean manufacturing practices to enhance productivity.
Market Position and Strategy
The company operates in a highly competitive environment and focuses on strategic partnerships with major automotive manufacturers to secure long-term contracts. Cooper-Standard emphasizes innovation in product development to meet evolving customer needs.
Recent Developments
In 2024, Cooper-Standard has faced challenges related to raw material costs and inflation. The company has implemented recovery strategies, including pricing adjustments and cost control measures, to mitigate these pressures.
Segment Performance
For the nine months ended September 30, 2024, the performance of Cooper-Standard's reportable segments is summarized below:
| Segment | Sales (2024) | Sales (2023) | Change |
|---|---|---|---|
| Sealing Systems | $1,069,590,000 | $1,092,915,000 | $(23,325,000) |
| Fluid Handling Systems | $941,996,000 | $959,582,000 | $(17,586,000) |
Conclusion
Cooper-Standard remains focused on its mission to enhance customer satisfaction through innovative solutions while navigating financial challenges and market dynamics.
How Cooper-Standard Holdings Inc. (CPS) Works
Overview of Operations
Cooper-Standard Holdings Inc. operates primarily in the automotive sector, specializing in the manufacturing of sealing and fluid handling systems. The company is structured into two reportable segments: Sealing Systems and Fluid Handling Systems. As of September 30, 2024, Cooper-Standard reported total sales of $685.4 million for the third quarter, a decline from $736.0 million in the same period of 2023.
Financial Performance
The financial performance for Cooper-Standard as of Q3 2024 is as follows:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Sales | $685,353,000 | $736,038,000 | ($50,685,000) |
| Cost of Products Sold | $609,041,000 | $629,504,000 | ($20,463,000) |
| Gross Profit | $76,312,000 | $106,534,000 | ($30,222,000) |
| Gross Profit Percentage | 11.1% | 14.5% | (3.4%) |
| Selling, Administration & Engineering Expenses | $49,698,000 | $49,834,000 | ($136,000) |
| Net (Loss) Income | ($10,893,000) | $11,383,000 | ($22,276,000) |
Segment Performance
For the nine months ended September 30, 2024, the sales breakdown by segment is as follows:
| Segment | Sales 2024 | Sales 2023 | Change |
|---|---|---|---|
| Sealing Systems | $1,069,590,000 | $1,092,915,000 | ($23,325,000) |
| Fluid Handling Systems | $941,996,000 | $959,582,000 | ($17,586,000) |
| Total for Reportable Segments | $2,011,586,000 | $2,052,497,000 | ($40,911,000) |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash flow details are as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,647,000 | $37,616,000 |
| Net Cash Used in Investing Activities | ($38,727,000) | ($47,475,000) |
| Net Cash (Used in) Provided by Financing Activities | ($6,790,000) | $39,370,000 |
Debt and Interest Expense
Cooper-Standard's interest expense for the nine months ended September 30, 2024, was reported at $87,041,000, down from $98,057,000 in the same period of 2023. The company has been managing its debt strategically, opting to pay interest at a lower cash rate instead of accruing higher payment-in-kind interest.
Restructuring and Impairment Charges
Restructuring charges for the nine months ended September 30, 2024, totaled $20,430,000, an increase from $12,924,000 in 2023. The company is undergoing a restructuring plan aimed at optimizing costs.
Inventory Management
As of September 30, 2024, Cooper-Standard's inventory levels were as follows:
| Inventory Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Finished Goods | $47,839,000 | $38,022,000 |
| Work in Process | $45,769,000 | $38,284,000 |
| Raw Materials and Supplies | $83,637,000 | $70,540,000 |
| Total Inventory | $177,245,000 | $146,846,000 |
Equity and Market Position
As of September 30, 2024, Cooper-Standard's total equity was reported at ($163,050,000), reflecting ongoing challenges in profitability and market conditions.
How Cooper-Standard Holdings Inc. (CPS) Makes Money
Business Segments
Cooper-Standard Holdings Inc. operates primarily through two segments: Sealing Systems and Fluid Handling Systems. These segments serve various markets, including passenger vehicles and commercial vehicles.
Revenue Generation
For the nine months ended September 30, 2024, Cooper-Standard reported total sales of $2,070,140 thousand, which reflects a decrease of $72,096 thousand compared to the same period in 2023. The breakdown of sales by segment is as follows:
| Segment | Sales (2024) | Sales (2023) | Change |
|---|---|---|---|
| Sealing Systems | $1,069,590 | $1,092,915 | $(23,325) |
| Fluid Handling Systems | $941,996 | $959,582 | $(17,586) |
| Total | $2,011,586 | $2,052,497 | $(40,911) |
Cost of Goods Sold and Gross Profit
The cost of products sold for the nine months ended September 30, 2024, was $1,849,245 thousand, resulting in a gross profit of $220,895 thousand. The gross profit percentage of sales was 10.7%.
In comparison, for the same period in 2023, the cost of products sold was $1,916,160 thousand, yielding a gross profit of $226,076 thousand, with a gross profit percentage of 10.6%.
Operating Expenses
Selling, administration, and engineering expenses for the nine months ended September 30, 2024, totaled $157,472 thousand, which is 7.6% of sales, compared to $156,528 thousand or 7.3% of sales in 2023.
Net Income and Loss
Cooper-Standard reported a net loss of $118,384 thousand for the nine months ended September 30, 2024, compared to a loss of $148,149 thousand for the same period in 2023. The net loss attributable to Cooper-Standard Holdings Inc. was $118,960 thousand for 2024.
Segment Adjusted EBITDA
The adjusted EBITDA for the segments for the nine months ended September 30, 2024, was as follows:
| Segment | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change |
|---|---|---|---|
| Sealing Systems | $86,310 | $86,898 | $(588) |
| Fluid Handling Systems | $50,353 | $59,136 | $(8,783) |
| Total | $136,663 | $146,034 | $(9,371) |
Interest Expense
Net interest expense for the nine months ended September 30, 2024, was $87,041 thousand, a decrease from $98,057 thousand for the same period in 2023.
Pension Settlement
During the nine months ended September 30, 2024, a pension settlement charge of $44,571 thousand was recorded, compared to no such charge in 2023.
Cash Flow from Operating Activities
Net cash provided by operating activities for the nine months ended September 30, 2024, was $1,647 thousand, a significant decrease from $37,616 thousand in 2023.
Consolidated Financial Position
As of September 30, 2024, total liabilities were $1,960,588 thousand, while total equity stood at $(163,050) thousand, indicating a negative equity position.
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Article updated on 8 Nov 2024
Resources:
- Cooper-Standard Holdings Inc. (CPS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cooper-Standard Holdings Inc. (CPS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cooper-Standard Holdings Inc. (CPS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.