NORTHVILLE, Mich.—Cooper Standard has narrowed its net loss in the first quarter of 2021 by 70 percent to $34 million, helped by improved manufacturing efficiencies, lower selling, administrative and engineering (SGA&E) expense and favorable volume and mix.
Adjusted earnings (EBITDA) for the first three months of the year rose 366 percent to $38.5 million, on 2.1 percent higher sales of $670 million, the U.S. automotive supplier reported May 6.
Cooper, however, narrowly missed its operating plan targets, due mainly to the significant microchip-related production cuts and supply chain disruptions that affected its market, Chairman and CEO Jeffrey Edwards said.
While headwinds "are continuing and have intensified" in the second quarter, Edwards said he anticipated automotive production to rebound in the second half of the year.
On the full year outlook, Cooper said the ongoing global microchip shortage had caused significant delays and disruption of automotive production around the world.
"As a result, our largest customers have announced significant reductions of their production schedules for certain key vehicles in the second quarter of 2021," it said.
In the meantime, with demand remaining strong for new light vehicles, Cooper said it expected production to ramp up quickly once microchips become more readily available.
"Despite ongoing uncertainty and incremental commodity headwinds, the company still expects to deliver full-year results within the ranges of our original guidance," it noted.
Cooper said Feb. 17 that it expected sales and adjusted earnings to return to 2019 levels this year at $2.5-$2.7 billion and $180-$200 million respectively.
