Cooper Standard(US:CPS)2021-11-03 16:00Financial Performance - Sales for the three months ended September 30, 2021, decreased by 22.9% to $526.69 million compared to $683.20 million in the same period of 2020, primarily due to lower vehicle production volumes impacted by semiconductor supply issues [102]. - The gross loss for the three months ended September 30, 2021, was $8.13 million, a decrease of $92.61 million compared to a gross profit of $84.49 million in the same period of 2020 [101]. - Operating loss for the three months ended September 30, 2021, was $72.89 million, compared to an operating profit of $18.79 million in the same period of 2020, reflecting a decline of $91.68 million [101]. - Net loss attributable to Cooper-Standard Holdings Inc. for the three months ended September 30, 2021, was $123.17 million, compared to a net income of $4.38 million in the same period of 2020, representing a decrease of $127.55 million [101]. - Total consolidated sales for Q3 2021 were $526.690 million, down $156.510 million or 23% from $683.200 million in Q3 2020 [111]. - Consolidated adjusted EBITDA for Q3 2021 was $(33.859) million, a decrease of $97.993 million from $64.134 million in Q3 2020 [116]. - Total Automotive sales for the nine months ended September 30, 2021, were $1.627 billion, an increase of $39.232 million or 2.5% from $1.588 billion in the same period of 2020 [115]. - Adjusted EBITDA for the nine months ended September 30, 2021, was $(10,045) thousand, compared to $(21,339) thousand for the same period in 2020, indicating an improvement in operating performance [126]. - The company reported a net loss attributable to Cooper-Standard Holdings Inc. of $(220,648) thousand for the nine months ended September 30, 2021, compared to a net loss of $(240,426) thousand for the same period in 2020 [126]. Production and Sales Trends - Light vehicle production in North America decreased by 25.2% to 3.0 million units for the three months ended September 30, 2021, compared to 4.0 million units in the same period of 2020 [99]. - North America sales decreased by $88.415 million to $270.592 million in Q3 2021 compared to Q3 2020, a decline of approximately 24.6% [111]. - Europe sales fell by $47.347 million to $98.682 million in Q3 2021 compared to Q3 2020, a decrease of about 32.4% [111]. - Asia Pacific sales decreased by $21.537 million to $109.526 million in Q3 2021 compared to Q3 2020, a decline of approximately 16.4% [111]. - For the nine months ended September 30, 2021, North America sales increased by $37.008 million to $857.153 million compared to $820.145 million in the same period of 2020, a rise of approximately 4.5% [115]. Costs and Expenses - Gross profit for the nine months ended September 30, 2021 decreased by 11.9% to $59.2 million, compared to $67.3 million for the same period in 2020 [109]. - Selling, administration, and engineering expense for the nine months ended September 30, 2021 was 9.7% of sales, down from 11.9% for the same period in 2020 [109]. - Net interest expense for the nine months ended September 30, 2021 increased by $13.2 million compared to the same period in 2020, primarily due to a full nine months of interest expense for Senior Secured Notes issued in May 2020 [109]. - Cost of products sold for the nine months ended September 30, 2021 was $1,669.6 million, an increase of $58.3 million compared to $1,611.3 million for the same period in 2020 [107]. - Restructuring charges for the nine months ended September 30, 2021 increased by $11.0 million compared to the same period in 2020, driven by higher charges in Europe [109]. - Impairment charges for the nine months ended September 30, 2021 were $1.8 million, related to idle assets, compared to $87.7 million for the same period in 2020 [109]. Economic and Market Conditions - The company expects inflationary pressures on raw materials, including steel and aluminum, to impact results for the remainder of 2021 and into 2022 [98]. - The global economy is projected to grow by approximately 5.9% in 2021, with North America expected to see growth of around 6.0% [95]. - Unemployment in North America improved to below 5.0% in September 2021, contributing to increased consumer confidence and spending [95]. - The semiconductor supply issues have led to production slowdowns and stoppages, with expectations for improvement in production volumes beginning in the fourth quarter of 2021 [99]. - Forward-looking statements indicate potential risks including the impact of COVID-19, automotive sales contractions, and supply chain disruptions that may affect future performance [130]. Cash Flow and Capital Expenditures - Net cash used in operations was $111.5 million for the nine months ended September 30, 2021, compared to $26.5 million for the same period in 2020, primarily due to working capital outflows and reduced cash earnings [120]. - Net cash used in investing activities was $72.8 million for the nine months ended September 30, 2021, a decrease from $89.5 million in the same period of 2020, reflecting significant decreases in capital expenditures due to COVID-19 and supply chain issues [120]. - The company anticipates spending approximately $100 million on capital expenditures in 2021, continuing its initiative to reduce overall capital spending [120]. - The company continues to actively preserve cash and enhance liquidity, including decreasing capital expenditures, to meet ongoing funding requirements despite challenges from the COVID-19 pandemic [119]. - The company’s ability to fund working capital needs and comply with financial covenants depends on future operating performance and external factors such as raw material costs and overall automotive industry conditions [119]. - As of September 30, 2021, approximately $98.7 million of repurchase authorization remained under the common stock repurchase program approved in June 2018 [123]. - The company has not made any repurchases under the stock repurchase program during the nine months ended September 30, 2021, or 2020 [123].