"While there is still a lot of uncertainty in our industry and in the global economy, we continue to manage the aspects of our business that we can control," Edwards told investors during a conference call Nov. 2. "Our cost structure has improved significantly and is still improving. Our manufacturing operations are running as efficiently as they ever have, and we continue to fulfill our end of the bargain with our customers: delivering quality products—on time—and supporting their strategic initiatives and objectives with our technology and innovation."
In the third quarter alone, Edwards noted, the company realized $22 million in operational savings, primarily through lean initiatives and increased savings.
The net loss for the three months ended Sept. 30 came in at $32.7 million, down from the $123.2 million in the year-ago period. The FY22 Q3 losses include $1.7 million in restructuring charges and other special items.
Adjusted net loss, which excludes restructuring, special items and related impacts, was $29.5 million—or about $1.71 per diluted share. The gains, Cooper-Standard said in its financial report, were driven by improved volume and mix, lower income tax expense and improved operating efficiencies. Continuing material cost inflation, net of realized customer recoveries, higher labor costs and other inflationary headwinds partially offset the gains.
Adjusted EBITDA was $20.5 million, a more than $10 million improvement year-over-year.
"As for headwinds in the quarter, higher material costs amounted to $35 million," Jon Banas, executive vice president and chief financial officer, said during the Q3 investors call. "Higher wages, compensation-related costs, general inflationary prices and other items reduced adjusted EBITDA by a combined $10 million in the quarter."