Earnings call transcript Q1 2023

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Operator

Good morning, ladies and gentlemen, and welcome to the Cooper Standard First Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded, and the webcast will be available on the Cooper-Standard website for replay later today.

I would now like to turn the call over to Roger Hendriksen, Director of Investor Relations.

Roger Hendriksen

Thanks, Gerald, and good morning, everyone. our joining you appreciate call today. We Banas, of with you members Edwards, and and our Financial and morning leadership speaking be Chairman Jon Officer; Executive will who Chief Vice on Officer. Jeff President Chief team are: The Executive the this call

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

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

we ask company's For you on periodic more forward-looking statements, this Exchange the information Slide to and filings and of statements that X Securities our refer in Commission. with presentation the included

appendix This Reconciliations most to of presentation to measures. measures their financial directly measures contains also the comparable non-GAAP the are the non-GAAP presentation. financial GAAP in included

way, Jeff turn of those call the with to out formalities Edwards. So I'll now the over

Jeff Edwards

To some appreciate performed a Thanks, opportunity I'm in how our teams outlook provide update We the our environment. on focus the our have results such we highlights to review forward. dynamic operations maintained operational our quarter. on Roger. everyone. pleased with and and Good in first quarter extremely provide an begin of first key or morning, and business Slide X, certainly our performance the indicators going

to services continuing at to are keeping execute delivering employees and in safe. We our world-class in quality products levels our customers and

of of had all-time quarters of best one we our scorecards customer our XX% In being quality fact, with in terms green. product

for terms quarter. scorecards again In were excellent at launches, program the XX% green of new customer our

incident more a in strive below we X.XX. perfect to at world-class commitment X recognize company these for we safety teams a worked, achievements as first plants for to reported team everyone, day. per their the the X.XX maintaining incidents. be leadership global incidents ultimate safety dedication X Through quarter. to of I focus, for with XX have of rate of safety months We continued the safe want the in well reportable just workplace a the importantly, continue plants goal toward hours of incidents not of and of our year, XXX,XXX record of our as benchmark had continues X continued proud Most performance a total be I every world-class their and our the plants outstanding. could

getting challenges tight labor cost-cut continue our to such overall often are high continuing doing and achieve. our industry, efforts challenges we our said to reducing "you as We're continuing improve While as impact our possible. be these so, industry, erratic prosperity". our we production reductions cost to harder as year-over-year are to And can to results. inflation schedules, everything although offset we're and on as in can't costs, your focus lean way markets Even

by XX% through able were savings, teams savings These agreements in purchasing some and margin to deliver for over the manufacturing initiatives Our $X with volume combined our enabled us in year and in mix cost same commercial increase to and a lean improving and efficiencies quarter recoveries, enhanced gross ago. and pricing on improvements period million quarter. the the year-over-year

made have modest year we more later come anticipated next. and So this progress with to

technical customer upcoming awards engineering our vehicle and on business service. customers us the to advanced as In capabilities, our solutions on $XX electric in the first new vehicle result especially their business million new world-class through Finally, relationships provide electric our of we're and quarter, we win continuing net a programs, value platforms. strong design awards, innovative awarded and

Moving to Slide X.

probably again global frequently receive. the be pleased for the We one in our "Supplier product top Year" I of most General of to indication a awards customer relationships, technology as the one very Motors, think and once our prestigious our valued service named and of world-class Another industry. of service are were awards customers, we and

is presented our to While an that and was quarter, during year. we've and it's them, that look award GM annual award forward. really and consecutive the award, we announced relationship achieved performance first of this continuing This expanding throughout forward year is reflective our the sixth going the the past with

Now, over turn financial call the the details quarter. discuss to to let of me Jon the

Jonathan Banas

balance Thanks, cash some our Slide we discuss X, results sheet. for of year. In show a flows, Jeff, of last everyone. quarter summary period and liquidity same and XXXX our the to financial next results slides, with comparisons good and few our of quarter the the the provide morning, I'll on aspects details our for first On

million million, sales volume First favorable and offset first was or and America compared of $XXX.X the in our million enhanced agreements. North in partially $XX.X XXXX. mix, commercial just XXXX. and X.X% sales quarter compares first was by the of exchange. quarter profit the Gross $XX.X or Europe to increase of were X.X% XXXX foreign quarter to driven profit primarily These sales. unfavorable for by quarter first XX.X% a were gross currency of an of of increase The This

the adjustments first the all good offset impact was by the lean as in ongoing mix, made energy year-over-year XXXX. in recoveries the We savings as pricing well of our foreign volume compared was Adjusted favorable in The of to inflation beginning as and partially the million quarter in improvement we cost progress exchange. quarter, impact $XX.X quarter primarily and driven headwinds first unfavorable our on and EBITDA in are initiatives, such and labor inflation recover areas see and favorable sustainable to to by positive establish $XXX,XXX commercial and price results. costs negotiations

the in that would negotiations concluded first expected quarter into the second. have we been have certain carried However,

we continue line expect the remaining more drive the margin concluded quarter improvements anticipate sustainable successfully in we we of this on price, the And and achieving top our negotiations be of beyond. and focus will these expansion As growth second in quarters will year. in

the the XXXX. transactions of early quarter $XXX.X that we quarter. on refinancing The of debt for loss was $XX.X loss quarter net the million first compared loss million quarter net a current $XX.X basis, GAAP closed million included related the first U.S. a extinguishment to to On an in and in of

included first The XXXX net loss also in $X.X million restructuring quarter costs.

items impact, tax million the per million or for share to $X related per first $XX.X adjusted share or loss these the was $X.XX loss an net diluted and $XX.X XXXX. compared the quarter in of Excluding net of diluted first quarter adjusted

from improved profit, improvement offset by interest The gross higher expense. year-over-year resulted primarily partially

first the year totaled period X.X% ago. in $XX.X million or a sales X.X% the compared expenditures or $XX.X capital same Our sales in million to of quarter of

we're of sales for have CapEx full at X% disciplined committed We on continue year. focus around keeping a investments, to to the capital and

Moving quarter into to the results X key XXXX. some The factors provide the first charts Slide Slide X. our for of on additional impacting insights of

For including customer Improving year-over-year customer adjustments, driver category. production biggest revenue, volume with the and benefiting XXXX. adjustments net volume by mix, and favorable sales million $XX cost price of also price quarter mix the recoveries quarter, increased was versus the and customer first volume the in

mainly the by exchange, and Chinese related Euro, the year. to period Canadian sales Foreign RMB the the same last versus $XX dollar million reduced

the adjusted $X energy, and General certain $X The material initiatives million higher while adjustments million positive the and contributors net EBITDA for volume, quarter. $X drove contributed were salaries, in foreign transportation These were partially wages EBITDA, million Lean purchasing improvement reduced combined in and price by recoveries impact $XX of ongoing manufacturing including and other mix year-over-year. adjusted costs exchange including by costs million, headwinds by offset quarter. a in $XX the the and quarter. efficiency inflation, pricing, was of For million.

Moving to Slide XX.

cash We operating improved are pleased the performance cash to operations and volume, capital Cash million positive approximately of by in primarily by year driven working free the XXXX, efficiencies. started with positive have was flow. and operations first $XX sales quarter provided from

$XX quarter mentioned reflecting program approximately earlier, timing launch flow million activity. March ending in XXXX. the approximately million, cash As XX, of CapEx the was was $X Free primarily

the operating we a we million. leverage of cash ended balance With volume $XXX and March with are approximately improved generating,

Combined XX, quarter pricing total on XXXX. cash outlook had believe products, facility, credit which for $XXX support flexible access resources at from will cash support for our and generation revolving the end, expectations sufficient our current our Based approximately million undrawn to of of on facilities our as vehicle customers our was current credit expected provide with of we way production, million March of light we $XXX solid commercial liquidity and hand, to sustainable ongoing in our on and demand availability operations.

That prepared concludes my remarks.

it turn back over me to let So Jeff.

Jeff Edwards

Thanks, Jon.

commercial deliver for highlight the Over provide I'd be initiatives some to that value the like even will some our and for update we that remainder to value with Then with year. I of forward customers. a customers us we few I'll company, our elevating as initiatives our significantly we of intended few are ensure our for. an outlook offer will compensated to significant to next the are our also believe strategic transformation adequately ability on to that of comments moving on a our need you that willing minutes, pay conclude the are further

XX. turn to Slide please So

creation work pricing related establish over quality our of value long-term. sustainable pressures recover to with of continuing to collaboratively the and inflationary all to We're costs customers earnings incremental that and enhance will

further customers. initiating by limited agreements our from indexed-based quarter, the we exposure additional During costs and risk material with commodity

As it than volatility, positioned are we've better ever believe we now commodity we before. relates to been

all inflation non-commodity continuing customers. it with and to we're relates As pricing, sustainable negotiations

and products supportive. provide Negotiations given our and very services been customers value our them, that have been have constructive the

While financial negotiations forward. further ongoing, are will outcomes drive that we results, improving achieve going to positive expect

with have customers cash We flow. our also been to improve working

to to-date, good been customer-owned receivables part solid as on in the further the and agreements As progress able tooling. of implemented. trade more terms the are progress we've coming quarters these favorable making We're implement anticipate repayment and news on of

Turning to XX. Slide

-- in These us energy industry customers gives to and of Analysis, the reduced for added advancements have tools by Fomulink our and advanced AI-based commercial new the part using and Virtual So provide expertise such compound process. what we've tool, through compound as in is our costs. been and the process, Engineering engineering value up digital we our the we critically our our of in tools By vehicles. Design ongoing sped significantly design strategic Design confidence our discussions development, overall Validation rapid transition important integration

As technical able systems deliver and and we're solutions faster. complex design optimized now highly to

business new result. winning are We a as

sustainability. design, valued and being addition, In as partner we're recognized by in our increasingly a functionality customers technology

Advanced in efficiency. Proprietary tools to manufacturing invested enhance Digital also We've

efficiency our more really utilization. is examples. a operations, system, OEE reduce of and suite scrap, even These -- costs expense and improve years, been technical with improve ahead past SG&A we Pulse reductions our advanced us partial maintenance which capabilities we System effectively, Control overall asset we've business. tools, more believe there plan manufacturing Wireless and a our able enabling our is as our to few partially Tracker secondary are and fixed conduct in Process the to our and Asset digital AI-based Our Automated Combined opportunity our to the tools are and of in driver over as these optimize few Liveline, grow leverage but

our us also enabling complementary ultimately they're and in now which with creation products allowing mission, product first maximize more this our of customers, services, Consistent our fluid into believe through us our stakeholders more we to support becoming advanced, we choice we value the by doing believe we and opportunities. will will value in to serve, the for And technically we customers They're are sustainable that expand incremental highly lines moving sophisticated forward. our pricing, business. company case, adjacent as provide

XX. Slide to Turning

will Responsibility each only out we It next individuals the Report year's on report. stakeholders. know, Corporate We Sustainable provide many values your year This we have who available our not you provide Solutions online which way will certainly insights check us you within recommend "Creating what the report, and servicing Together" titled weeks. be we X will do, As we as various company to and are publish guide report we highly The every worth be you with as time. are, a regarding the but that day. the details

XX. Slide Turning to

conclude a few our for prepared our Now remarks with on of outlook morning XXXX. rest I the thoughts this will

fully we year. the of financial expect each remaining First, achieve quarters results significantly I improved of the want to that highlight to in

settlements. Our would guidance the be toughest, commercial initial year plan our first and anticipated that given full the the expected quarter of timing

So, plan. that is with consistent our

in from results production and financial platforms upon volumes are very key top specifically, production dependent each Our in customers industry region. the our volumes,

change lot and forecasts continue a schedules. industry see customer of We production production to in

a outlook in modest current a So, continued certainly North But volume year-over-year positive continue will oil to labor and planning the that in represent moderate in may pressures overall, global and they remains America. makes bit our is difficult. for remainder Recent markets production costs our in We Europe primarily outlook availability driven inflationary inflation through currently and headwind. growth levels. The moderate by remain at anticipates and of for production if will certain tight expect inflationary continue. the reductions year outlook elevated increases risks

commercial On advance offset further customer in pricing to we year side, our establish expect the successfully sustainable the negotiations in all the of to inflation of remainder segments. and

customer we however, to in quarter, more saw remains any for XXXX certainly closing agreement our Overall, As difficult the predict. the first outlook timing is very positive. for

will plan We in update results. detailed give quarter a conjunction and we second as do, guidance with more to our formal typically

continued of increasing believe approaching we them. we through of confidence want managing challenging in sustainable our value I the our team industry continued enhanced their environment near-term for point of and trust, want global thank and to we our commitment this and their support and I excellence thank stakeholders. also dedication an value volume and improved customers are all delivering the as commercial for increases. products, in I benefit their technologies to from and provide their employees with to price for recognition agreements and our relatively for customers inflection services

services the will Over digital and increasing our demands advanced and mobility transform the exceed by meet today's our value to that with technology of continuing drive believe we our longer industry. we tools company, products, term, and

open Q&A. This concludes the call remarks, our so prepared for let's

Operator

[Operator Instructions].

comes Our Ward first of from The Company. question Benchmark Michael

Michael Ward

you. Thank

just seeing the [lumps] of question process? big X, these over of don't assume a waiting. consistent more more sustainable that the referring maturing that's X you When have is Is commercial say where X, the of Just quarters on we're pricing, to I agreements Is last sum to fair? just the agreements. have what you commercial

Jeff Edwards

is this Thanks Mike, question. Jeff. for the

in now customer agreements So, One that X in put every the we buckets. world. is virtually index-based I'd with it have price the

as in and... for we approach that of down, we we that material go some the give raw recovery The haven't they a prices size past. up, OEM. that's as recover, So material And had sustainable the raw to back go

Michael Ward

is deal negotiated. that So

Okay, is negotiated, like that? redo quarter so it have that deal every or to anything you don't

Jeff Edwards

that return in sustainable already we to all regarding pricing, allow that forward. simple, prices don't us It's ongoing. your negotiated. out just going second there for get contracts on place Related regions have on price renegotiating It's It's that's in question already all real going we're with a to the business product. back of price. because easier existing each the higher investments we've that And the made. forward, in much new customer won at those there prices certainly, And impacts we've that business

it's about price hasn't to the also volume that all So forecasted. there that's offset increases other as the inflation and place been really getting taken

to that talk that return in all really have to to So sustainable sure make these we don't North that's of we're doing price. Europe, what and Asia so profitability, levels and year go America every back about

Michael Ward

Yes, yes.

the or -- the was commercial performance looks probably on negotiations. And that Is it one based regional level, on Europe on EBITDA like based slower the fair? the that on timing Okay. the was

Jeff Edwards

sustainable Europe. I say say you timing million in we've that. the were I this often, close have to I first going in here forward, Europe, second to Mike, line going fair our concluded the that's a Europe to What next we're the in certainly to Europe this burn here really on that cash the very forward we X half proving $XXX that to going mentioned bottom will I about and The will supplier over mean, happen. probably it because of are didn't us customers address results well. year. as in we tell those and that, I valued our in book set the hitting if look pricing I are years, quite is And I'm allow that didn't negotiations confident in we Yes. several today, sat would not And Europe. quarter.

Michael Ward

an currency Well, big that -- Europe, $X And that's relative year-over-year to QX? that And was from is did of delta to in number. all QX, a part currency in stack QX How million. the was up Europe? well,

Jonathan Banas

Inflation significant euro It posted was -- but at of XXXX when QX this sorry, that end Mike, Europe, the results QX, you in to the a sequentially, FX was Jon. wasn't pull-through the the euro actually until and a with of the driver is bridge. we earnings was But driver negative of driving in currencies all year. XXXX continuing, look the quarter this big with first higher part obviously. a big other sequential the sales

Operator

line from the Our Baird. next DiRubbio by comes question Brian of

Brian DiRubbio

working we Jon, could tooling, and of you. questions the with in year? about we you change AR kind with of the couple that from see release for what A capital terms first, talked that -- this

Jonathan Banas

million start I'll Cooper's We're the question. for the looking been we've sit in they're that our using to until -- continuing our as as customers' couple to Brian. we've meet And last start approved to far fund the of they're not and actually assets. We're of that about $XXX to ready balance finally for sheet Thanks bill efforts running balance talking tooling, they about once quarters with requirements production. the sheet customer-owned continue been tools

wait there it's basis that to implement the the before for we our kick regular by off efforts been milestones, XX a months progressive customers. get reimbursed don't get or upfront to to-date, monies longer are deposits whereby and have reimbursed on whether payments we the we So along months, spent that's whether interim or tools XX have way, to even

We're day. $XXX -- million a down, in increase making incremental to looking So the but certainly unlock drive $XXX every team double-digit in decrease continuing is can year. that end and that global towards you million we're decrease of that sorry, that think to about number drive this progress the --

you the out. as our here to see should So we point year a I QX on benefit won't results, but anything close

benefit when to that standpoint, capital, and a sales are From capital flows continuing cash outflow comes we certainly. We're we ramp. QX, term it to a have the always unlock In see working because working to are of are but then have also March on an XX. able with sales the sheet it the incremental receivables purchasing inventory, we as laid putting you more rise, at year-end, down balance customer

So a in this quarters. by has to, of that see And that and it seasonality been alluded changes we'll Jeff mitigated is you would usage no terms working be but of have couple typically to exception, next seeing the continue the those capital.

Brian DiRubbio

way from and put that 'XX? a are a of So that bit take this in basis? to as well receivables I to cash guess, cash Or seasonality, the is on I'll maybe I realize understand we source see little it a may expecting something longer

Jonathan Banas

it following. remains the Well, the to the seen of that be continues end whether towards into year out

I see are and benefits the this think, to year reductions. tooling biggest we'll related inventory

Brian DiRubbio

quickly enough. is cash looking sustainable achievable XX company months? of does profitability. get at Supply to going really know, longer? still in I a last of what Or it. And than is rate but problem, year. next up inflation have trying and that But Got you a better. are understand generation? bit little need EBITDA the to take a historic bit a better as then to you think get for we're something chains can to Is how sort little obviously, progression, it is the happen, Fair that to to back the

Jeff Edwards

the Clearly, all positive global good struggling get generating Europe, the to and see you you million sustainable return when That year. Those the we'd will, unit XX ROIC negotiations second million to need here be higher. want a expect see EBITDA substantially them you in those industry to that in it's the Clearly, to a be and million foundation, America here see think to North at back or certainly somewhere double-digit $XXX us double-digit level And million Brian, to like and XX to flow. probably XX a would Clearly, conclude primary I XX everywhere. guess, sustainable numbers, the price by volumes cash operating America, we -- to quarter we through are go to I we're North get especially see to going closer to units. Europe, units, of as million years. considered we if sustainable speak XX that Jeff. all

But volume because in quite the be term, that not strong. short is to expected

to to each don't where level keep everywhere, so of and take then and out Our of talking we quarter. focus all profitability is, business that sustainable we negotiate a to the costs that increases positive we're we're these of about continue have price cash can back

Brian DiRubbio

Got it. question. And just final a

see of catch You tailwind mentioned -- throughout were material a a just at the about to or point are any up we costs Do trying that we be year? headwind going becoming just $X year to this million.

Jonathan Banas

our pressure this of we're to are watchful and anything rolled way a inflation lag very but There Jon. customer because some significant purchase a a those on pressures the so of some signs for don't single And you we of see there portion look of we inputs is overall, the of thought of that. terms side, inflationary QX, rubber impact Brian, When the help is, way. We on headwind the would where the ahead the at made we be obviously be and came steel, significant bit index do point, of into whole here will trends cases, metals the year, we're heading. recover it's good of that have cold seeing many way also commodity support facing in does commodities you're effect minor certain that could be but news when in perhaps some in any we the digits in a come here we year area on in knew the volatility. the contracts commodity may on the news of the starting side of of the good see

Brian DiRubbio

all thoughts. Appreciate the Great.

Operator

comes of Capital Management. Sheffield next Point Patrick question the from Our Beach line of

Patrick Sheffield

to said missed how repeat X I Europe years? you much the in over next you Could burn going were that comment. you

Jeff Edwards

Yes, Patrick, it's Jeff.

it compiled we $XX were consecutive burning showed million years, when X So what year. million $XX looking I that at, first plan right, that, to each said us guess, business we months our ago, was in I

pricing. that were on So saying to Europe already negotiated. address the was cash prices in if we getting other costs indexed is like sustainable needed Mike didn't in over I to period we've burn material $XXX million inflationary And X-year address the didn't we we raw what going and that recovery a we as if

then confident went customers on way say and that. to -- to that pleased that's the that, I'm I I'm case on negotiating be and are going So with the the not very about based us,

when that the tough think to negotiation one and Europe going that and what in into a needed ask. you we negotiations the And requires the that. customer's I you go supplier are a Europe, response type reflecting really we're be of that clearly, know adjustments don't you in valued until is

So way the see you'll as in second expect of proud reflected I the business, we're and of we those work said pretty bottom the prices that the year, half of our line through I that.

Patrick Sheffield

provide decrease. just change the of was And QX EBITDA you And I What -- revenues sequential was you biggest were basis. some broad-based? increase seeing Great. performance, the there QX a don't buckets and broadly to it kind on to of big know at region? could, what do a Okay. by year-over-year looking, level Or high if similar

Jonathan Banas

last year. broad-based, I'll did of Patrick, that last QX and one. QX settled but agreements have in Jon. in commercial of take locked get year, Generally in it's we

So that and quarterly repeat. don't helped QX, in certainly necessarily those one-timers performance the

FX talked that in that is deal profitability. There been to about the seeing has of last It's booked decline. negative, We are to impact. that continuing of all you're that. here. magnitude because year, mostly of quarter-over-quarter million I front, about about impacting of $X of QX the we is FX But good Mike on the talking to Jeff make one-time as commercial progress the

both manufacturing front, our initiatives, to lean positive the front purchasing our sequentially. But comps and continue the benefit on

kind the in, and volumes American Q. sequential QX, European all are volumes you'll North see. also that those strong picking So of that into pieces the benefit up the QX remain the Certainly,

Patrick Sheffield

positive. that like negative much in stuff how and QX? of benefit million other So FX on decline was X It the was onetime sounds

the of of it’s kind So that. bulk

Jonathan Banas

FX The didn't negatives booked news in were QX the in good and the repeat QX. here that

Patrick Sheffield

more of then, That get we volumes guys to kind to would sit global a some volumes just get you providing in need Where What everywhere? color flow on and right. Okay. All makes today? And sense. cash margins year. you were back positive normal you

Jeff Edwards

volumes this is saying wasn't earlier that forecasted the asked. question. that we back pricing gets cash an we context answer was What Patrick, us Jeff. Yes. and you that was I are the what the flow is which have just Clearly, to negotiating your -- positive,

Patrick Sheffield

Yes… Okay.

Jeff Edwards

related years. EBITDA then Yes. in the earlier XXXX talk was sort going been than have it's and that we going volume know to when positive X level performance bit And how we'll to was the and the The get I so second question come back always here of increase we next little to asked a news that double-digit do be as is then and that that? in forward to But is and to probably ROIC, to related it. or up and going a XX about but volume X% so. probably out, would more about changing, I How expect see out sure forecast take keeps larger there, that's when we're year talked the the not or see about I'm we'll half of least 'XX. I'll this plays at year, well, it last

Patrick Sheffield

Yes. That the expectations -- set did read then to at guess, you I I end of year. to looking end that of internal the guys QX last when it, budget, want performance, how your just compare helps. And at

Jeff Edwards

Yes.

But the it we to said, over book was for. I time of that to that QX, a with be allow much the thought going that timing associated planning what type was as pretty I the retros with didn't were us we couple exception of think catches of here. up negotiations commercial

too it. about worried So I'm not

half stronger and the think, thought they're year. they Europe going in basically what We North to of a think be the second little to be. were bit America, I going we were volumes

So that's we'll if you do. we and there the July updates what to talk guidance, like we think, about our call, usually is in any there

Operator

Instructions]. [Operator

Briggs of comes question StoneX from next Financial. Our Ben

Ben Briggs

of bad kind around all a quarter. not So

somewhere on in close had to that I gross though think, to thing it sets guidance. you the is question margin. come I up here a One

looks any you if the what margin wondering you in you margin certainly year. year-over-year a improvement expansion more But step said on of basis. be? the I'm know, if So pace a gross could a back forward should clarity? basis of gross a of on you see quarter, the course but provide kind margin over on It this step took with of I like, you can any get more sequential granular would kind gross just

So any more granularity appreciated? there would be

Jonathan Banas

the into you look looking your question. what understand QX just this it's year? from happened of for or I to forward Are Ben, Jon. wanted QX

Ben Briggs

I I both. both. guess, guess,

Jonathan Banas

items Okay. already well. that you at I or gross then as gross in losses, have the and impact Well, far fact, sequential fall about Anytime benefit XXX%, right? top most they as as the profit bridge, of commercial the wins line those, profit, do talked through immediately certainly, they

Ben Briggs

Right.

Jonathan Banas

then, FX our over cost manufacturing the efficiencies any purchasing and gross see get -- both to and our those benefits in of our materials we goods kind be the the benefit being P&L. at of then the is in front all positive of And a too of period-over-period. there profit scattered portion sequentially, are environment, significant direct would sold, you drivers

million that peg presumably, well. the X gross line item. that as impact about talked a I can't individual portion to you negatively of So already one But profit would

cost entire continue efficiencies gross on, will profit for so across level. drive guidance organization and as areas. structure you. we've to every certainly we're they that not coming we've Going pricing But the we intently as improvements focused said, today don't And the commercial to here gross the at the streams will guide been look sustainable the work already all to profit updating day, work and drive forward,

those and the continue see already profit gross improve big the financial to quarter as said be So pieces, we've each today. will you'll earlier overall results,

Operator

Thank you for to turn your yours. The is are call question. the now It floor closing appears Hendriksen more I questions. no there like remarks. back over would for to Roger

Roger Hendriksen

Thanks feel to your forward and we'll Okay. with the for Thanks, very to questions If much. up, speaking everybody, to your look and soon. talk please joining further engagement, again. for us to directly, call come you free out reach you We questions.

Operator

your for This you conference. program. conclude today's in Thank the participation does

You disconnect. may now

Cooper-Standard (CPS) 4 May 232023 Q1 Earnings call transcript