Cooper Standard Holdings Inc (CPS) Q1 2025 earnings call Highlights: Operational Excellence …

Appearance date: May 02, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Cooper Standard Holdings Inc (NYSE: CPS) achieved a green score of 99% for product quality scorecards, which indicates an outstanding operating performance.

• The company reported a significant improvement in security, with 82% of the production plants achieving a perfect security value.

• The cost optimization efforts led to savings of 20 million US dollars from Lean initiatives and an additional 8 million US dollar from restructuring efforts.

• In the first quarter of 2025, CPS received a net business of 55 million US dollars and presented a strong customer confidence and business growth.

• The company received recognition for its environmental responsibility, including the USA Today leader, one of the American climate leaders.

• The turnover in the first quarter of 2025 decreased by 1.4% compared to the same period in 2024, especially due to unfavorable foreign exchange effects.

• The company was continuous challenges through general inflation and higher costs for customs, duties and tariffs.

• Net money for operating activities was $ 14.9 million, which indicates a cash drainage in accordance with the previous year.

• There is uncertainty in terms of trade policy and tariffs that could affect the demand and the production volume for light vehicles.

• The company is careful with potential indirect effects of tariffs on the general demand and production volumes, which could have a negative impact on business.

Q: On film 10, 2 million US dollars are mentioned in duties and tariffs. Is this a timing problem and expect you to get this amount back in future quarters? A: Yes, this is a minor effect of tariffs due to the uncertainty about the implementation date. We assume that we will be reserved for this amount because it was a temporary problem. (John Bani, CFO)

Q: If the trajectory increases from hybrid vehicles, is this at the expense of electric vehicles? Why do you think that happens? A: Consumers seem to prefer the hybrid approach that offers us more content per vehicle. The significant increase in hybrid vehicle production is advantageous for Cooper Standard because it increases our content per vehicle. (Jeff Edwards, CEO)

Q: Do you withdraw instructions or is there a change in your instructions for the year? A: No, we do not pull back guidelines. We will rate again at the end of the second quarter if we have more information, but at the moment we have not seen any significant changes to our original plan. (Jeff Edwards, CEO)