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Sep 30, 2021
Cooper Standard Q3 2021 Earnings Report
Reported a net loss due to semiconductor-related customer schedule reductions and higher materials costs.
Key Takeaways
Cooper Standard reported a decrease in sales and a net loss for the third quarter of 2021, primarily due to semiconductor-related customer schedule reductions, higher materials costs and a credit loss. However, the company secured new business awards in electric vehicle platforms and reached a long-term commercial agreement to license its FortrexTM technology.
Sales totaled $526.7 million, impacted by semiconductor-related customer schedule reductions.
Net loss was $123.2 million, or $(7.20) per diluted share.
Adjusted EBITDA totaled $(33.9) million, affected by semiconductor issues and higher costs.
Electric Vehicle platforms accounted for approximately $30 million in net new business awards.
Forward Guidance
Cooper Standard updated its 2021 full year guidance due to ongoing semiconductor shortage, supply chain constraints and higher costs.
Positive Outlook
- Consumer demand for new light vehicles remains strong.
- U.S. dealer inventories remain at or near historic lows.
- Customer schedules and industry forecasts suggest production volumes will begin to improve in the fourth quarter.
- Production volumes are expected to continue to ramp up in the first half of 2022.
- The company expects its current solid cash balance and access to flexible credit facilities will provide sufficient resources to support ongoing operations and the execution of planned strategic initiatives.
Challenges Ahead
- Light vehicle manufacturers and their suppliers continue to experience significant production delays and disruption due to the ongoing global semiconductor shortage.
- Other supply chain constraints are creating significant production delays and disruption.
- Significantly higher commodity and materials costs continue to create additional headwinds.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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