CPS - Earnings call transcript Q1 2018 | Cooper-Standard Holdings Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning ladies and gentlemen, and welcome to the Cooper-Standard First Quarter 2018 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded and the webcast will be available for replay later today. I would now like to turn the call over to Roger Hendriksen, Director of Investor Relations.

Roger Hendriksen

Thank you Angela and good morning everyone. the join taking call. you appreciate time our to We and will leadership with morning The Financial and Officer. Chairman and our Vice who Banas, are Executive be Executive Jon Edwards, this members of Chief call team speaking President Officer; the you Jeff Chief on

presentation Before I this remind statements. you to begin, forward-looking we that need contains

uncertainties. to these involve plans that and are certain and assumptions do made While statements currently based be believes information risks these on and current factual reasonable, management

on we included and Securities statements, you filings being to information call turn that more presentation For said, the this slide forward-looking the that over the refer ask and Commission. with three in With to of I'll Exchange Jeff statements company's periodic Edwards.

Jeff Edwards

everyone. five on to and morning I’d data first points Okay. like with accomplishments highlights, Thanks slide in the key quarter. and begin some Roger good

all all, over the more that’s sales up reached of last First record period an in million of quarter, same year. X% $XXX than time the

demand newly though the us on production even business line, Our launched mix top global the for and light volume SUV and was solid vehicle total truck improvement gave light and down. continuing

a rates and Adjusted $XXX in the improved was XX% than from operating for The driver especially Foreign were year. key Asia. record was a $XX positive of reductions million. increase increase the Europe quarter first efficiencies. was cost more of exchange EBITDA This million quarter also an factor, and over in last

the the material quarter safety world increases and in for our continuing Standard. adjustments, our in results. price improvements to at Cooper Our These priority global to strong progress headwinds employees cost of the our both administrative team continues from facilities remains everyone manufacturing The customer terrific offset top class in driving make functions. towards help

XX our finished single incident. a safety proud quarter that are very the without of locations We

once versus and again incident last better Our world-class our improved benchmark. was year total rate than

keep quarter terms first to a to XX throughout will increase compared to the than each launches We strong well, been program year. drive quarter of continue commitment new company improvements. total even and This last in the the culture embraced of has XX% more of those. of very further an represented other safety total Our as safe a had

receive significant is and system manage when to first the these to this new winning come volume, customers they the Cooper also awards. for our are continue While our awarding annual innovation to totaled have our outstanding a team certainly of our deserve launch Standard. certainly new contracts. enables and flawless key business customers net Product launches, quality expect its awards of we technology smoothly part consideration launches and service $XXX contracts many are In Successful from providing contract key factors million. are future certainly reason business the and quarter our new in

Our to latest well advances that technological be continue very received.

In business. contract products our including fact during the replacement both awards and innovation sales, for in million totaling new quarter annualized we received $XX

$X.X awards, sales contracts higher next these more billion, within business. exceed have five innovation to to in awarded impact most first will our $X production, automotive – and value margin of financial we will anticipate core soon Turning billion exceeds XXXX six, commercialize our industry higher years. our come add, significant We began our the products automotive products sales total in and annualized innovation as begin the our with slide within recent these to into awarded now innovations since these contracts

the customers existing innovations are expanding ones. and opening with doors Our opportunities with new

other will to for placing Asian lead the in orders the Fortrex future. technology likely our approved, quarter it, certified further to first European customer automotive key by the believe technology this lends near was a in customers We it and and During Germany. approving credibility

to Fortrex technology as industrial stages the program add industry automotive in could the lineup and we of to existing products technology of group that product expectation for specialty customers outside This revenue Additionally, the Fortrex of to with initiated is group. will forward. generate by Fortrex demand and and the begin convert that awareness look program we in to our third that to ISG increased to Initially this going we’ve early accelerated refer incremental the quarter year. an benefits resolve will

News slide in provide certainly to innovations appreciated. and taking valued Moving Industry demand is the on is orders recognition evidence are industry as overall that further notice that our the breakthrough seven, Automotive our technology. increasing PACE evidence Award such automotive customer of

honor last automotive for industry have received in Known It’s PACE judging advancement suppliers. suppliers. innovation, and been and superior developed among by rigorous automotive this commercialized benchmark prestigious and the entire have technological innovation, technology and Fortrex We automotive innovations News the to Automotive innovative a Manufactures that team sealing automotive company. a process honors Association innovation thank month for applications. business PACE Parts for best Automotive best pleased very of our the the that for are the running performance our highlights Award We as Award

very and total through hard high been received innovation, in than above level Year to XX,XXX; certainly suppliers eight, a what value year go prestigious it’s honor select supplier Moving our customer this significant quality recently to a We’d also dedication GM a achievement. gives of who standards so Supplier the suppliers finalist and of a GM Chrysler and congratulate team is service. their Systems beyond This are year of XXX as group Suppler Awards appreciate. of the Fluid have the we also more year pleased Transfer of of like the earned continuing out providing for of each to Award. their to world approximately Year Motors selected and the the slide Fiat General as

notable to numerous in and honors individual win our regional addition the awards at level In recognition these production to awards, customer continue we global or locations.

we these they types XX confirm help customer of industry elite us we progress world towards Receiving the received total a becoming recognition in months. are company awards we’ve the customer fact, class company. in puts In over XX and making believe and past in

honored and to all to our congratulations employees are be So Standard. that customers very Cooper doing the that excited with are business we contributed

So over Jon, call me turn to you. let the

Jon Banas

Jeff thanks the comparison financial the our few results next some good the Okay, details on everyone. and our also provide of results and I’ll our a on profile. first On and XX XXXX capital have briefly comment to we year. of first summary balance prior slides additional quarter in sheet In morning liquidity, quarter structure for slide

primarily quarter XXXX Asia strong and regions. by of included $XX driven by improvement a concessions. First were Europe up year. which X.X% were The and of $XXX.X favorable in million, customer last and quarter the was exchange all of sales in million, quarter record volume first X.X% gains partially over solid mix approximately reduction, and offset one-time in the price These to some the and amounted impact foreign

sales. year customer year. the a X% average quarter to to of the profit as of Gross we expect was For reductions quarter $XXX.X million, last first around price full the for slight increase compared

this or as of that quarter EBITDA sales offset For in vehicle was of mix of X.X% price gross $XXX.X efficiencies other quarter Selling, or expense. XXXX. a last as efficiencies sales was XX.X% the well sales reductions and improvement. earlier. for lean were lower general, more key impact mentioned in drivers costs sales, percentage the operating million Adjusted quarter the and XX.X% the initiatives, than million the for of SGA&E of and as lean improvement compensation in Jeff X.X% first margin other year. to of This increased production of engineering the $XX was $XXX administrative sales Lower million versus operational of a result initiatives first compared first related customer and

we efficiency us in just work systems process improvements as administrative said and do our more operations. continue invest to As and and we support previously, are smarter we in that enabling manufacturing to in function

drive Going in expect cost we further will these forward savings investments SGA&E.

in see we commodity cost quarter, but raw on the chain mitigate certain supply to We inflation optimization materials substantially efforts. to able impact through are continue the

commodity look continue year. to the pricing through we expect we As pressures ahead

global to continue the leverage will strategies higher implement will to help We that costs. offset our scale

U.S. was XX%. quarter to for effective driven U.S. compared statutory XX% The the is the reduced new XX% rate law the of Our first for lower primarily tax by of quarter rate tax XXXX. rate the including

We to [ph] expectations was $X.XX continue reforms balance Related customer growth. support are quarter the on tax XXXX. the $XX.X our capital plans the to spending million. due was This maintaining our impacts the On for EPR quarter income in and interpret and respectively basis, share, in CapEx timing for to and per and for our expect guidance compared now our of up and of to the future quarter adjusted current year. with rate spending million to and projects an the of business the or certain net first higher we to year. $XX.X the the XX% analyze XX% out in-line Net income launches later was was of diluted first

Our full range expectations have the CapEx year in we for remained provided. guidance

break slide, acquisitions we and region On growth foreign and the slide next of show for sales out the growth our excluding by rate and sales XX, organic exchange growth impacts divestitures.

the was growth basis in for of was sales overall quarter. X.X% global declines. year-over-year grew organic X.X%, excess sales market Our well our which the an On

leading rates, drive continued competitive In We that market our technologies innovation, sustainable market continued global share to focus of outpace likely our advantages production to the fact us we on light three the and believe enhancement regions. four compared are vehicle in provide gains. footprint

Moving to XX. slide

of with and balance million the $XXX of credit sheet cash profile remains on We ended first XXXX Our strong. quarter hand.

net $XXX debt same million was and year. at Our the was last to $XXX the at compares debt net of quarter end of debt the million $XXX This time million. total

is a debt our from adjusted the just basis first EBITDA coverage is end of improvement at for XXx. quarter XX currently XXXX. ratio the X.Xx trailing and of gross interest our On ratio an to months over Our improved leverage X.Xx net X.Xx,

annually rate into to entered The third the amendment we term XX undrawn March points nearly hand of plus a quarter the XXXX. by $XXX by With cash liquidity for basis loan. the the to expense interest revolver, dollar maintained will an lowering basis points. we on During term facility, as lower rate million interest loan cash reduce solid remaining euro rate of of the XXX our million $X and

XXXX. quarter. an outflow of first an quarter $XX.X Finally flow cash flow the the was cash in of million compared for million few $XX.X of outflow a Free on to thoughts

in the in cash by and for a in earlier. as the driven change of program year-over-year out in flow higher certain primarily free the payments customer cash seasonal pattern of factoring typical excepted the for working quarter our industry. us know mentioned Europe, well timing given CapEx first utilization flow is receivable accounts the of the as lower is you year As and The capital

that expect in or continued strong we our priorities. our through future generation in and our strength balance allocation whether in will the with acquisitions approach top the support We liquidity sheet plans this profitable combined growth capital consistent expect strategic With cash being mind, credit remains and organic strategic our priority. when to and with profile,

Now call Jeff, you. the let back over me to turn

Jeff Edwards

thanks guidance Jon. just outlook XX. our Okay, wrap review to morning, minute to let’s let To XXXX; this move take slide our me discussion up a and for

strong our the So prospects results year. we of opportunities and feel the the following at The about in good we reflective very outlook. of call full are provided our our quarter, last still guidance the time ranges our for

pressures and cost expect to our pressures We continue. customers the commodities from pricing from

and reduction cost year. XX.X% still XX.X% enable continue full to believe to However, we to expand margins that pressures offset and we the for have us those between will initiatives underway

Our business the next to is and several stronger core over even get potential has than years. automotive stronger ever the

by grow their that support In in potential team the the global and for the Standard class value and Cooper for business customers significant have non-automotive continued our we been to create want in strategies our opportunities company. world the our place end to have our thanking excited We to business. incremental about remain systems addition, very utilizing put executing engagement many to that

continuing to want also for thank prepared comments. customers our and trust. our their support We This concludes

Q&A. the line for So we’ll now open

Operator

[Operator Instructions].

with Roth Capital. is Koranda first Matt Our question from

Matt Koranda

Good morning guys.

Jeff Edwards

Matt. Hey

Jon Banas

Matt. Hey

Matt Koranda

the provide housekeeping by region Just see, possible to? should then just what restructuring of allocation the you guys for allocated to is a expenses it wanted extinguishment regions cost and this debt quarter to item, we

Jon Banas

Roger, that’s this debt for about That is sits. the the easy our The handy piece. charge restructuring our do have was The where you will because one headquarters is the extinguishment easiest. American so segment. charge, that $XXXX, be North

Roger Hendriksen

it I hand, get and quick but do can follow-up. we at don’t right have it a

Jon Banas

follow-up can we one, easy an That’s you. with

Matt Koranda

since the lower Follow-up imply then offline are But slightly that reiterated would outlook and okay guess, one, remainder level thank you I input sort in call terms of increases, that are roughly about you any margin. but same talking of would material guess at [inaudible]. of what last look headwind I the on kind raw more pricing higher you. incremental sort guidance I about of revenue year, a could seeing for of you it is the And are at headwinds talk or the the the coming of

Jeff Edwards

Matt, pressures. revenue can Hey the about and this material Jeff. then is color some I’ll pretty give talk you raw around the detailed Jon

revenue almost the out say every on it the year. advantage as through really year, associated get tend of If prefer On us releases we wait remainder with calendar point update to front at we the are going give to of is we we until line, guidance anything to to the top the July. looking

about think the see more was associated in SUVs Clearly good a the see still and growth us say would pretty with changing. I for what volume and and even there mix obviously quarter mid-year line. we discount you continue there even top that’s and to that So the accurately to is we FX don’t depict I trucks after favorable what way

a So let’s but revenue, see may have how that July something up there in goes. possibility to in we adjust that is

and continues Regarding to there. be to going a nothing material, big change is challenge raw that

raw thing we I become got headwind more for with something business, cost look say other this material XX or the to and suggest most preparing Matt prepared getting me. The don’t material which we all that at that to for take is about raw I XX administrative really I of years is, you guess including are this and side, functions across it’s have are this that to not efficient would along. have been your manage companies you cost deal

great from your view to You of enough have to have you point to and some a across with smart leverage your heavy have lifting customers, of relationships with because the help have this to they then be scale purchasing world. you

about here So whining raw material I’m costs. not sitting

figure it out I do. think like we’ll forward deal always we that going with how to

So you of a get color having so the what said about. you give that, talking can Jon it around we are sense

Jon Banas

and chemicals you us inflationary Matt, given total overall. the about will to there going and on inflation are Carbon million the volatility $XX if significantly, a it year incremental be $XX million we recall aluminum there. overall metals Yes think EPDM and resins continued Certainly be to is past outlook, of headwind discussions will commodity prices be driving bucket steel us. pressures and oil for But where more the Black for and certain

we’d our to earlier thought we plan, at when So running million so based that. expectations and on set or our $XX than million million higher $XX we are about $XX about be we

Matt Koranda

okay. Got it,

above So that million you $XX beyond mentioned million the guys million, and the million $XX $XX incremental, of to call. prior in $XX

Jon Banas

correct. Yes

Matt Koranda

would full in sort I bit expected have or next hitting I that that guess run the I in looking operational just question in I some in helpful. was with $XX the that’s million on $XX which terms than my rate a through of efficiencies of savings Okay, cost bucket. savings are threads is is little guys terms typical guess quarter-to-quarter. the more the guess $XX mean I quarter you million for remaining of million we year. any lumpiness quarters your sustainable of other in at

Jeff Edwards

is lumpy. Matt, Certainly Jeff. this Yeah not

the back invested the open the that IT down years and continue to teams of been in our about to of administrative that’s last on I the to expect job I transferring last the around similar infrastructure has allowing the last overall to built couple doing take great are the on of us a practices and the the very cost Again, and rate you of few years We’ve just for cost world, in year. the same out best taking doing We thing cost. momentum get operations call side. over know think pretty our day-to-day was the aggressive really

for you saw our the SG&A quarter. think in I of reflected that some

with pleased very So we’re it.

Our doing job. teams and a are just engaged fantastic very

Matt Koranda

really rate if inflation run some Is XX, that million, seeing. I a so that you guys that Okay, you you increased we’re an math with the commodity I fair $XXX at just assumption? $XX roughly of which do looking guys here, are would be offsets million potentially quickly which a the that incremental know guess to out drag of

Jeff Edwards

is was in to I beginning our the headwinds what but that’s Yeah, trying the to that you mark are tell there, it is helping down. performance

forward, sat economic talked I but here and next about we on we’re even me would continue going wouldn’t better surprise we’re So manage and things can if why expect the year. we more them that headwinds, bullish on control expecting we’re preparing those that so that and to will quarter that’s it

Matt Koranda

Okay, but then of me have the terms adjacent markets Alright, I queue. typical mentioned I’ll jump you kind was the the that’s remarks, and But in prepared technology last didn’t helpful. one slide on products adjacent of it and in for there. know back markets the advance in

I guys sort an of negotiations give are – of of in us update that terms just curious terms could if So was you your underway.

I you there? QX, through to need stand that bit of make there know guess I now to items more is substantial the think were there but announcements before as does a where we little what key get gating and that are eight

Jeff Edwards

things think the two front. Fortrex there I on were Yeah,

we’re I very excited I all, joining were finally and of about then the market that business. the have secondly team, momentum within adjacent Germany Jeff up, building the with mentioned first So we that, that signed pleased we’re so DeBest with and he

each customers talked those very areas we’ve they past. high level are having that the in So you respective with to of meetings across

make progress to the wiring whether there we or Matt. the or it’s roofing building or continue cable, So shoes

but North isn’t you the American interest continues we can for a that We and to statement. this you aren’t I position a tell grow just yet, define can to where

matter the as having high prospective very in a a it’s meetings We there partner, level Korea fact will here of momentum. next be so with over building week

XXth are chance the color it, guys tour the summarize can it. and you when tech with building the Chris and how will Couch momentum get on there talk you I folks a to and is center our but around think center tech in I of terrific all Jeff give and more you is here the Lyle who would

Matt Koranda

it. got guys. Alright, Thanks

Jon Banas

in Europe, America. to million on of question, the in your million America, in a Okay, $X.X or $XXX,XXX and restructuring so circle charges million nominal North amount in South Matt, we quarter, $X.X back in have $X.X Asia

when file Q our more see details that on we You’ll later. some

Operator

from is next question Our from John Murphy America. of Bank

Jeff Edwards

John. morning Good

Aileen Smith

Good John. for morning. Smith This is on Aileen

Jeff Edwards

Oh! Sorry Aileen.

Aileen Smith

No worries. raw Thanks raw cost you be able on Gap] you Can and customers? remind your material you percent percent of for the pass material the [Audio on cost commentary the burden average us to bear on dynamic. to may what what

Jeff Edwards

don’t Yeah, we go rich. don’t broke. the they material is news past in what go is Aileen we that – the said get When down, don’t we we go when the up, raw prices good

able in with XX%-ish a between – been our how think North it. well, of That’s to just the discussion [ph] about our with all those different, work I our ability cost use before customers, and and business, Fernando’s what’s you we to to America those numbers this and are we’ve in about in good isn’t to are So but going work range made wrong. bit the Europe, about varies that comment ability the business things little reason a of drive the out all the here suppliers the can they still of in pretty it terms as ability

and very to far your to You do so run and these able that the things have best been of we’ve ability drive well. the business to

Aileen Smith

expanding the for are set adjacent be currently inflation a you your will as quoting those automotive just to working to up of cost And the commodity on, businesses pass for, to your some or able existing where that similarly to on the business contracts that, follow-up customers?

Jeff Edwards

me advantage are now where like smaller, think view early the side. expect will have that That’s they to technology on. of will so what terms point and it I be would favorable from other an those grillers I looks on we be than more the conditions

Aileen Smith

one experience that and the then Have they gotten release. on or the growth or second worse more another? these starting year the moderate some in to reductions downs you question volume that’s regions stated customer the region that with Okay, pressure major standard over and is press acute you price typically are past in the remarkably price in any

Jeff Edwards

in more it’s contractual several region call, would across to dynamic to Well mentioned we to was there plan. years. last particular the up in do we I we’re that that XXXX built is due with That some that winning to say X%. business, a of years really X.X% the so for the have advance as X.X% faced I sort know that We’ve know and last agreed between arrangements math pressure into averaged we you bumped there. I consider you In of wouldn’t unusual. any the

us on it is For that anything question based sort this in how industry term the works would on see your of you don’t know usual. you and I

Aileen Smith

customer That’s base are been a among helpful segments question, automakers your developments portfolios and seeing are rationalizing of shuttering cases past is year and non-economic their look hard at in in last taking that business some that or regions. the the over one we’ve

passenger example of markets? service like and to cars do In disruptive only planning recent how business being and product diversify these and like with this are latest ford internal more terms announcements the motivation investment, you end developments

Jeff Edwards

is XX%. in is America about it I points to you and where The XX% trend to we about business total as little SUVs, refer in of percentage Two think trucks and of would in were trucks, there, winning our percentage I a of focus revenue, calls relates CUVs a I in that this North say of the our sort on number fact mentioned SUVs in ahead know in you bit revenue crossover. announcements, here

question? as aren’t it passenger second company, some on was have to the the your being in What is half good certain shape that impacted strongest In we that. that relates our of the of fact we’re revenue pretty so cars in

Aileen Smith

you terms your market as end the in businesses diversify like developments serve that these all rougher for more ancillary towards of, more motivation talking do products you’re Just about? to recent

Jeff Edwards

or it or motivation serves don’t more less I in think any our strategies.

we innovation it the industry rubber made and all figure can sense to felt us. how and sell across Our and is a strategy center along billion example innovation the an we out take for front there, that as $XX ability it Fortrex

I think don’t necessarily strategy OEM the that So that. drove

The would in million other where thing that I say business $XXX so or revenue, have non-automotive. we the in that’s ISG

to continue Fortrex we would provides way that talking will inorganically We didn’t to have that about. an business a I and us add be both we’re and on Fortrex organic in big probably if portfolio with wouldn’t growing opportunity to as as there. we again as focused say fast that

innovation drove that So else. than more again, anything

Aileen Smith

question. Thanks helpful. very that’s Great, for the

Jeff Edwards

Okay.

Operator

Our next Ward Michael Research. Transportation Ward question with is from

Michael Ward

morning Good everyone.

Jeff Edwards

Mike. Hey

Jon Banas

Mike. Hey

Michael Ward

Just was question win auto that to Germany, the on related in about follow-up an earlier an win?

Jeff Edwards

was. it Yes,

Michael Ward

third Okay, with and auto your that’s win Fortrex?

Jeff Edwards

number is Mike. That four

Michael Ward

other okay. four, one. and the based one what’s U.S., One Japan in Number Germany one the you then said or in in the Japan

Jeff Edwards

a think here customers, how it I Asia those look sort one you pond how is across couple in at would in Germany, I depends call about Yeah, it. and but one it of the

Michael Ward

just are in the China since Is that expand all in it end? guys and market as towards low well, continues the know or SUV you Okay, where is it all you China? so to winning

Jeff Edwards

be and Obviously continues business we crossovers. largest business been here them there per as is high as some that our there SAIC that be strategy America. well. content to SUV’s for car on focus probably North passenger better same those happens Mike has We and our in have vehicle to balanced most, than the customer Primarily opportunities

North we XX%, so as think moment. above sit XX% here little I a and gives sense above that that think would total revenue, is cars number – gave for total you for Europe it the SUV’s, is all in all crossovers, we the I is consider and bit some today company basically America you trucks,

and the So that’s revenue China market, American portion a there. the between of North big

from space, and technology region we’re win what that’s of product teams in success. other in very or starting the from again, and we’re are business consider to they to we’re that ability local our been and on automakers our supply in base. good what and we’re we SUVs versus local also after And The they about there, selective and quality produce again thing ability a have having to going our the lot there we’re the very launch doing domestic based the crossovers our historically higher buying China very area the proud and

So there’s going there we really are comment make things helping revenue on The on know, way that a couple billion in as you of achieving I in us. are our China. final $X would to well

the We mix. pleased with are very

starting are very locals foreign also We JV’s. in-roads make we’re pleased the that well to with as as the

Michael Ward

vehicles. as locals go products or of bigger to Again, some larger the larger programs,

Jeff Edwards

like China see Yeah, trend read North everything of more you a obviously Europe. than they in America lot will profile and the will we’re whole the are following the market and look investment continue – predicting segment the

Michael Ward

at don’t ready? Is from you China base the at it I have been ago point, few do is hitting we I the know a but look first you go one some the the When say market, years $XX may think here? when, Where will. million to

Jeff Edwards

million. $XX million, $XX

Michael Ward

We get can there?

Jeff Edwards

million, a billion, of people. million, lot $X.X $XX $XX

develop, mean it the other shoes we’re ways. just many, and grow. not we’re to in many continues you as interested know It’s in about market about to targeting, I think So automotive you that very and a there the country excited continue products side. facilities you the helping will about am us in that’s Fortrex think I non-automotive very and

Michael Ward

yours based were it company ago when say for revenue like than to gain a U.S. you over years XX was easier it Is there?

Jeff Edwards

I make it think if you have innovation technology you happen. can and

innovation technology have better you strong have don’t you if think partners. and I

Michael Ward

launches XX least Interesting! QX, had Just at one is and cadence What mentioned like quarter. in – you housekeeping item, QX? you the in first QX the

Jon Banas

So and XX like QX do we last year. it’s pretty It XXX total looks about in and then spread we so over in in evenly is QX increase QX. a XX for launches Mike, will QX, XX XX% in which have the XX year,

Michael Ward

really Wow! guys. I it. appreciate you Awesome! Thank

Jeff Edwards

Mike. Okay. Thanks

Operator

Goldman David next question Tamberrino with from our And Sachs. is

Mariel Kennedy

Tamberrino. Hi guys, for this is Mariel Kennedy David on

Jeff Edwards

morning. Good

Mariel Kennedy

questions some some on had just I wins. the Yeah, Fortrex of

American pretty power still later that seeing You incremental guys innovation quarter, on as are any do are products but come North tough adoption you you will pricing saw sort of Fortrex you think or in pushing pressure this now? them or with

Jeff Edwards

The raw programs on this material thing. of pricing favorable side we are getting won, that we’ve already the

So call performance have in material so weight, willing the love love the to it the that favorably raw and it’s I XX% are on improved it. lighter customers you, portion would they they same, very would received. the tell The premium for we X% to expected, pay

Mariel Kennedy

helpful. on a really replacement or just the more bit more you on business with Okay on little that products, are new wins? thanks, seeing innovation you then seeing And are that’s that,

Jeff Edwards

really elected work you in it fronts. so the Fortrex do just we in existing early was put on ahead the It’s things and conquest business it But success are the programs. only and if easier after but were industry, well, to go combination that market. since, [Audio both. both on originally Gap] was in going to it to felt a to gone get of we’ve We conquest, the having on we We way to as so

entry MagAlloy ago. with a with on business. fact. for of for to fuel one the many to had us On the think for year since actually barrier Honda I different for a and That a the already three doors Honda and and first the company do half business MagAlloy It’s matter was the brake we opened years the technology launched announced, Honda we’ve a as or wins announced that we’ve four

than seeing we examples not. that are of more So

Mariel Kennedy

last really question, those. much, And so that’s helpful. jus on Thanks the then

have to With far that currently any these when pretty smaller is out? contracts larger we contract or little on the sense bit products, do of expect being a you can see sizes sort

Jeff Edwards

I on we you given what this. this morning, said some have think I context

into the think about time $X period expect we out XXXX I billion.

as think automotive will that in of core about hit billion If the, billion, turned you we call have that we the referring you it revenue time have a today about our XXXX-ish are in what being innovative $X.X over billion, to by the the product. $X $X.X business

and hear the business will on an year you we of Fortrex won that North further North In sealing in coming. product and be next, have highly continues core would winning, expect that so cycles, I’ll I this And so Fortrex, to we go as out give the in you almost programs as we those turnover. XX% American our example. America confident it’s the are portfolio

Mariel Kennedy

all much. That’s from Okay, us. thanks so

Jeff Edwards

Okay.

Operator

questions. there . like the I call over that to Hendriksen back would no are turn Roger appears to now more It

Roger Hendriksen

Hey, thank This participation interest you for Angela, morning. call. forward and again with thank your you to your our you continuing Standard do We in we look all appreciate and soon. concludes Cooper call in speaking today’s this

Operator

participating. for you Thank

You disconnect. may now

Cooper-Standard (CPS) 2 May 182018 Q1 Earnings call transcript