Cooper-Standard Holdings Inc. posted higher revenue and a narrower net loss in the second quarter because of improving global market conditions and easing inflation pressures, the company said in an earnings report Thursday.
The Michigan supplier said revenue increased by nearly 14 percent to $605.9 million from $533.2 million in the second quarter last year. Cooper-Standard, an automotive sealing and fluid delivery parts supplier, said the rise in sales reflected favorable volumes and recoveries in material cost inflation.
“In June, we started to see improvements in overall production volume, and increased benefits from our cost recovery initiatives,” CEO Jeff Edwards said in a Friday morning call with investors and analysts. “Combined with our improved operating efficiency and lower fixed cost, the improved volume mix and net pricing enabled us to drive a positive EBITDA margin in cash flow in the last month of the quarter, partially offsetting disappointing results in April and May.”
The suburban Detroit-based company reported a net loss of $33.2 million in the latest quarter compared with a loss of $63.6 million in the year-ago period. Adjusted net loss, which the automotive supplier said excludes “restructuring, other special items and their related tax impact,” was $58.5 million compared with an adjusted net loss of $51.1 million the year prior.
“The year-over-year change was primarily due to continuing increases in commodity and material costs, wages, general inflation and higher income tax expense,” the company said.
Shares of Cooper-Standard rose 74 percent to $8.75 in early midday trading Friday.
Cooper-Standard ranks No. 78 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $2.3 billion in 2021.