Cost savings from lean manufacturing and purchasing initiatives, favorable price adjustments, and lower raw material costs bolstered the quarterly EBITDA, Cooper-Standard noted in its financial results. These were partially offset by increased accruals for annual incentive compensation, continuing inflationary pressure, and higher labor and energy costs.
For the full year, Cooper-Standard's sales improved by 11.5 percent to $2.82 billion, while its gross profit more than doubled from 2022 to $290.8 million.
"We delivered strong revenue growth in 2023 through a combination of new program launches and the successful implementation of sustainable pricing," Edwards told investors during a call Feb. 13. "Overall, our total sales increased by 12 percent, significantly outpacing industry production."
The company posted a net loss of $202 million in FY2023, a $13.4 million improvement over FY2022. The adjusted net loss for the year was $82.3 million, an improvement from 2022's adjusted net loss of $171.5 million.
Full-year adjusted EBITDA stood at $167.1 million—5.9 percent of sales—and was an increase of $129.2 million over 2022.
"In addition to the top line growth, we had another solid year in improving operating efficiencies," Edwards said. "Our manufacturing purchasing teams combined to deliver $56 million in cost savings through defined lean program and initiatives."
In a news release, Cooper-Standard credited its full-year improvements to favorable volume and mix, sustainable price adjustments, improved manufacturing efficiency, lower material costs, reduced asset impairment charges and lower income tax expense. Weighing on results were losses on refinancing and extinguishment of debt, higher wages, general inflation, higher interest expense, pension settlement charges, and higher incentive compensation.