Cooper-Standard Holdings Inc (CPS) Reports 12% Sales Increase and 176. ...
Cooper-Standard Holdings Inc (NYSE:CPS) reported Q3 2023 sales of $736.0 million, a 12.0% increase compared to Q3 2022.
Q3 2023 gross profit totaled $106.5 million, marking a 176.3% increase compared to the same period in 2022.
The company's net income for Q3 2023 was $11.4 million, reflecting an improvement of $44.0 million compared to Q3 2022.
Adjusted EBITDA of $79.1 million, or 10.7% of sales, increased by $58.6 million compared to Q3 2022.
On November 3, 2023, Cooper-Standard Holdings Inc (NYSE:CPS) released its earnings report for the third quarter of 2023. The company reported strong results, with significant increases in sales, gross profit, and net income compared to the same period in 2022.
Financial Performance and Highlights
Cooper-Standard's Q3 2023 sales totaled $736.0 million, marking a 12.0% increase compared to Q3 2022. Gross profit for the quarter was $106.5 million, a significant increase of 176.3% compared to the same period in 2022. The company's net income for the quarter was $11.4 million, reflecting an improvement of $44.0 million compared to Q3 2022. Adjusted EBITDA for the quarter was $79.1 million, or 10.7% of sales, marking an increase of $58.6 million compared to Q3 2022.
We continued to leverage higher production volume, operating efficiency and further implementation of enhanced commercial agreements to drive strong margin improvements in the quarter, said Jeffrey Edwards, chairman and CEO, Cooper Standard. We believe our investments in customer-focused technology and innovation have been key to recent operating improvement and will further position us for long-term growth and success.
Financial Tables and Analysis
The company's consolidated results for the three and nine months ended September 30, 2023, and 2022, show significant improvements in sales, net income, and adjusted EBITDA. The year-over-year increase in Q3 sales was primarily attributable to favorable volume and mix, sustainable price adjustments, inflation recoveries, and favorable foreign exchange, partially offset by the deconsolidation or divestiture of non-core businesses.
Adjusted EBITDA for Q3 2023 was $79.1 million compared to $20.5 million in Q3 2022. The year-over-year improvement was primarily due to improved volume and mix, favorable price adjustments, and savings generated from lean manufacturing and purchasing initiatives, partially offset by continuing inflationary pressures, including higher labor and energy costs, and unfavorable foreign exchange.
Outlook and Guidance
Cooper-Standard has raised its full-year 2023 guidance based on the strong Q3 results and positive industry projections for global light vehicle production. The company expects to continue leveraging incremental production volumes to drive further growth and operating efficiencies. The updated full-year guidance ranges are as follows: Sales are expected to be between $2.7 - $2.8 billion, and Adjusted EBITDA is projected to be between $165 - $180 million.
Cooper-Standard Holdings Inc (NYSE:CPS) continues to demonstrate strong financial performance, leveraging higher production volumes, operating efficiency, and enhanced commercial agreements to drive margin improvements. The company's investments in customer-focused technology and innovation have been key to recent operating improvement and are expected to further position the company for long-term growth and success.
Explore the complete 8-K earnings release (here) from Cooper-Standard Holdings Inc for further details.
This article first appeared on GuruFocus.
