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Jun 30, 2020
Cooper Standard Q2 2020 Earnings Report
Reported a significant decrease in sales due to industry-wide shutdowns and a net loss due to non-cash impairment charges.
Key Takeaways
Cooper Standard reported a challenging second quarter in 2020, with sales significantly impacted by industry-wide shutdowns due to the COVID-19 pandemic. The company experienced a net loss, although it maintained a strong cash balance and secured new business awards related to its innovation products.
Sales totaled $340.5 million, significantly impacted by industry-wide shutdowns.
Net loss of $134.2 million or $(7.93) per diluted share.
Adjusted net loss of $111.8 million or $(6.61) per diluted share.
Strong cash balance of $388.0 million at quarter end.
Forward Guidance
Based on current expectations, the company anticipates that its strong cash balance and access to credit facilities will support ongoing operations and strategic initiatives for the next 12 months.
Positive Outlook
- Strong cash balance.
- Increasing access to flexible credit facilities.
- Sufficient resources to support ongoing operations.
- Execution of planned strategic initiatives.
- Production volumes globally were at approximately 70 percent of the levels that had been anticipated prior to the global pandemic.
Challenges Ahead
- Continued variability in launch schedules for the remainder of the year.
- Prolonged or material contractions in automotive sales and production volumes.
- Inability to realize sales represented by awarded business.
- Escalating pricing pressures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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