CPS - Earnings call transcript Q2 2024 | Cooper-Standard Holdings Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Cooper-Standard Second Quarter 2024 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. Please go ahead.

Roger Hendriksen

Thanks, Julie, and good morning, everyone. call our joining for this morning. Thanks 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

appendix ask that statements For refer on filings more non-GAAP statements, we presentation of to Commission. company's information Jeff X financial to turn Slide most financial measures. the Reconciliations with Exchange this contains over included GAAP non-GAAP you of presentation and the the forward-looking of to periodic With also This call directly the their and the those Securities in formalities the way, to presentations. in I'll out measures measures the Edwards. comparable are included

Jeffrey Edwards

opportunity We Okay. Thanks, our outlook forward. Roger, the update going an and business and our everyone. and on happy appreciate results provide second-quarter to August, review

Slide and I'd values. begin our on are strong of key operational we certainly X, points core to like believe reflective some to continued to commitment second-quarter our So, company's data excellence highlight that

In green of terms of our product quality, were the in XX% quarter. customer scorecards

launches, new program our For customer scorecards were XX%.

exceptional achieve We allowing our to value deliver operational customers. continue to outstanding to us performance,

excellent. addition, our In be continues of the safety performance to plants

ultimate plants want leadership goal year. I of our incidents of months the strive the had that a this benchmark at the X hours a continue Leading for quarter, XX incident of we XXX,XXX X commitment world-class were worked, of and safety as reportable first record the had safety ongoing the their During the per company. performance plants outstanding teams the for to to entire X certainly perfect of safety below for recognize we second through total rate X.XX well incidents incidents these X.XX.

other solid another our with and enhanced quarter margin last quarter $XX by efficiency, profit points had solid basis savings teams year. we delivering of optimization, the cost programs. This improve of million commercial us purchasing and second manufacturing to combined with terms compared of XXX to gross In cost-saving initiatives improved our enabled lean agreements a our through

While more make toward to we continue do, we certainly our progress have targets. work to profitability

to Finally, leverage we're technical continuing to business. service, and win innovations award-winning capabilities, our new world-class

the awards. XXXX, were business In during awarded million second fact, $XX quarter of in net we new

ICE, to develop vehicle we technologies Importantly, new continue customers partner battery most electric vehicles. for important our platforms, with hybrid, including new design and of and their to some

Slide to Let's go X.

While providing priority our place customers with the and corporate to citizen world-class being success, also our a high always service, certainly steward be critical and on environment. good we products, and a technology, is of will a

in for quarter, value reduce our list our climate of creating create sustainability. recognition purpose, of energy leadership overall to stakeholders. our and that were in to committed continue develop to carbon and with included consumption be garner we America's the efforts values company leaders products that recognition outside recent all most We solutions pleased for In reduce USA footprint. Consistent we today's sustainable to products and remain will in

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

Jonathan Banas

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

last during year quarter compared divestiture of by the was of technical Europe business a second unfavorable million, decrease X.X% exchange. third to XXXX slight rubber the and our quarter driven foreign in quarter Second $XXX.X decrease sales of XXXX. The were of primarily the

to XXXX sustainable of restructuring compared energy and net million impact plan a second as related profit of termination to and million year-over-year and Excluding charge second million million achieved in to global last volume of $XX.X $X quarter to and EBITDA to or and of compares related a second of including U.S. $XX.X second gross $XX.X in On were the quarter of in of approximately ongoing GAAP and in second was foreign costs. exchange quarter unfavorable our or in charges X% positive XXXX. lean $XX.X the restructuring quarter partially supply Adjusted loss reported savings or was divestitures quarter headwinds primarily by The included to automotive the sales the net compared drivers actions. These production, non-cash up This cost such labor quarter pension the improvement million FX, and net been a chain, have areas outpacing favorable $XX.X related Gross well U.S. in of quarter savings as in mix, price of XXXX. we for a $XX.X sales the the XXXX, XX.X% second settlement the basis, of million XX.X% loss $XX.X increases, impact would initiatives. million second of was million compared in to million by driven quarter our of of result the manufacturing X.X%. sales. offset $XX.X declined by of in as the profit year. The the inflation a the which reduction

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

the quarter or Our year. totaled in quarter million the compared sales of $XX.X to $XX.X second capital second or X.X% X.X% in expenditures of of sales million last

preparation in for activity. maximize in our to programs successful spending continue capital primarily returns investments around on capital. Current discipline on capital to launch We customer exercise order focused remains invested

the the diluted $XX.X nearly improved improved of million, X $XXX.X $XX.X compared XXXX. million loss XX% the months. half or $XXX.X having the year year, half EBITDA of increased Net the a XX.X% for in solid basis margin X $X.XX Despite million by For as foreign half up in versus gross loss impacted profit to prior by versus divestitures by half to the was efficient and billion, net was and compared $X.XX of in the first actually the XXXX. Adjusted exchange. first XXXX. Adjusted to months business net to XXXX of $XXX per sales, at our of share of points first million XXX gross of loss first lower million half first came been the sales improved profit more first

quarter. Moving to charts of factors provide X quantifications Slide for on the X. key results The Slide and additional our the second impacting insights

foreign and divestiture the revenue, impact For was price adjustments, million million technical net the mix, by and increased the year. quarter mainly by volume customer $XX a the $X quarter million period same from the net euro sales versus rubber the the favorable $X in exchange, Chinese and further reduced versus including XXXX. RMB, to related last The of sales second Brazilian real

wages, a contributed from initiatives and well million other Favorable and recoveries as of combined quarter. Savings For drove $X price volume the net manufacturing purchasing year-over-year. for in as million improvement adjustments adjusted mix were cost and of EBITDA, ongoing lean $XX $X unfavorable general costs. quarter. transportation, salaries, million million were foreign in million initiatives implemented of restructuring $XX the contributors exchange including inflation, energy, partially These by and positive other $X offset

Slide to Moving XX.

by $XX For and initiatives restructuring were volume manufacturing and than from pressures. These general the the million months unfavorable offset more to sales first exchange $XX savings. These $XX million favorable and from positive were factors inflationary $X year, an X lean of net partially benefited divestitures by of and the in net adjustments. $XX volume, however, offset, million months X in benefited exchange. Adjusted million, mix million mix, adjustments, in foreign unfavorable continuing purchasing EBITDA efficiencies increment in price price and million amounting in $XX foreign of and improved first

Turning to Slide XX.

in despite a flow to our approximately interest $XX activities the of our cash second on cash June. in election in versus second improvement operating quarter pay quarter lien was at Looking Cash liquidity. notes the XXXX of third and million used slight payments XXXX,

of million $X cash compared million, second net approximately CapEx million earlier, approximately quarter a in was of resulting mentioned of improvement year. an last $XX As $XX to approximately XXXX, outflow in the

cash with $XXX this combined $XX second the sold of ended million liquidity we million XX, outflow, with Following quarter on ABL million, XXXX. of approximately a facility, $XXX of our as balance in availability cash total of June approximately resulted which

our investments profitability enabled the option conservative and payments the on improving capital sustainable upcoming to third on bolstered first to approach and that and have notes. cash our for are interest lien pay both cash generation elect efforts have lien We XXXX us December pleased our

vehicle avoids requirements outlook balances outlook now for full-year or positive future. Based our to our increases further have execute breakeven continue objectives from debt capital pursue to in for look as remarks. That and we negative, we While slightly and our cash sufficient this growth our we the production, changes on have service for debt will modestly our the our election structure improve in future. it light expectations strategically my concludes free to plans foreseeable cash our operations, flow and generation, believe prepared for improving future future our liquidity and to business profitable

turn over it back to Jeff. let me So,

Jeffrey Edwards

Thanks, John.

imperatives this focus progress morning, we're with minutes For an to we key our the provide strategic on the making on well as guidance. full-year as few our call our with have you update remaining I'd on like

team turn to can to see the imperatives spoke and comments to world-class on X our company, Last and key and XX. My already Slide accelerate these leadership year, outlined outlined growth responsibility. XX. global of maximize execution strategic So, Slide you earlier corporate long-term our value refined the please and

key to a few taken actions financial strength. on like to comments now I'd So, some we've improve our share

XX. Slide to Turning

optimize eliminating As automating leveraging us and announced organization last our by structure quarter, identify processes, line-based helped product further technology. to to costs significant new we opportunities quickly redundancies,

and related margins restructuring on million operating savings as invested capital salary expected we in both annualized a $XX the $XX As are globally. despite having costs global XXXX of light in to XXXX. not a achieve on to costs enable X a XXXX his the slow in we and out in million The payback in the our growth actions second slides, a months. more pointed between $XX segments but and during provide already projected save basis impact, successfully plan reductions on and million will the return exit savings expect this be beyond. In anticipated are are These much we impact million reduce $XX to if approximately full-year significant double-digit approach, positive implemented quarter, the between will Further, Jon expected EBITDA production. to second total, as beginning in the half and a result, year vehicle

order in key be financial drive do Of to our overall we component all this and the of level that to balance expect. of sheet course, our there's manage leverage. A we recognize still work returns reduce will to

a we share While XXX% over we levers specific or We have announcement will the you, can focused let I today are improve XX me with that operations XX months. our various to plans action we to assure continue pull specific task. to this you on have don't believe core next as

Slide to Turning XX.

our let to strategic me relation Now, by make innovation. driven profitable in imperative, growth a comments few financial

profitability. In our are to market. already and in development and develop create leader aerodynamics. We and such a customers and to styling globally. Asia X programs system from in customers flush new FlushSeal improve the enable programs driving value another have as sealing as on are in for global placing X innovative of working business, launched seal Recent our strength on the and as continue we greater innovations XXXX, we're business position gain We in currently our successfully our that technologies products share emphasis patented us

can As our targeted we year gains businesses this and XXXX. pipeline in we are win OEM confident strong technology among popularity have a into customers, we later this of

strong as of demand We market. segment also frameless the with opportunities widely these leader engineered in EV new for in see the that sealing are the highly increasingly recognized market for business systems. We're systems

the with at a Given our our solutions in our provide growing important CAGR sales in sealing and we a portfolio next wide also We improvements technology, already regenerated sustainability XX% material represent this X frameless business. years. Trends in waste-based of see nonfossil-based, recycled, leadership sealing inputs. of system for sustainable

bring across in and innovation the multiple will customers In to footprint. this regions. lower-carbon all is a and business excited new and reduced provide we has X the drive to a of in fully our development options new seal, lighter-weight, means reduction in awards and passed our and Gate We're it's new for A Fortrex very and process, XXXX weight patented addition, the material significant which new sustainable ready future. market, to innovation Flexicon. This anticipate of is sell solution door validation at carbon currently it we technology call development MicroDense footprint solution recyclable,

In Turning growth. to even for business, we Slide our greater handling see opportunity accelerated XX. fluid profitable

customers have product the a support portfolio core line fluid our innovative changing powertrains, adapt flexibility to in innovations for unique quickly have We rapid seeing demands. Recent all adoption. solutions to and of we are our to handling market

now technology in production cool additional OEMs. customers plastic It future and Our is industrialized. sourced production is currently aid with for globally X that

certainly Easy-Lock We launching and hub solutions. Ergo approval of part customers. per to capture Growth as lock are are products a of also connector key such similar and our share, market vehicle, our and and now are seeing content our new best-in-class adoption coolant strategy

pump transformational modules. new fully such as switch fluid our eCoFlow includes products handling eCoFlow integrated ahead, map coolant the technology and road Looking

products We by new help our to objectives. end available year, business exit the X process and our to innovation have drive of a making total quote new profitable the planned growth them us of for

As average innovations per content also we market, enhancements expand and vehicle bring handling will market where China, especially over domestic as as products we years. globally. the business our to solid next of build addressable We we in us growth new fluid our these with proprietary increase strong likely better total believe share OEMs technology our gains opportunities position expect the significantly advantage out several to improve see Chinese a exciting market. Patented enable to competitive our well some

Turning Slide is us the demand more powertrains different In near the term, vehicle creating actually. an trends current opportunity XX. to for for

total product vehicles hybrid vehicles diverse most programs. In build, know, ICE expand you we a us current coming well. Our will our fluid flexibility an believe see with product regardless overall they our what to about. and meaningfully vehicle than vehicle portfolio higher launched of we sweet more addressable the customers which XX% talking spot, traditional gives will We the represent as technology our been in new average the support and type years, we've per content true market of of content increase as

Turning to Slide XX.

a full guidance year. with outlook the our conclude on few me and for comments Let

vehicle everything the macro-level winning While been industry. We're first we're to the pleased after generally with higher in in particular, continue strategic of and to our certainly month. haven't in but energy, what have new toward costs, helped and it, the about some more. Unfortunately, Inflationary our year. light reverting EVs, persistently of half OEMs been schedules not make and by traditional on to price dealer to levels imposed our continued mention into be industry concessions. community, to rent, we things of we dynamics obvious we OEMs prompting lots expected month and progress inflation, pressure these continuing the revised results estimates on rising transportation, indirect downward our the drivers material, Inventory insurance, production, labor, their like for back program production the production demands the year not despite imperatives, are including supplier to due costs launches financing adoption for slower high consumer the to into reduce below are nearly goes pressures push impact and that coming

are those just So, all facts. the

to relative unfavorable to U.S. the foreign addition, both these Polish control. our are the beyond operating immediate the as the factors dollar continues are our sales and such Clearly, of key slide has impacted as peso In value our important Mexican negatively costs that and zloty. exchange currencies

our financial and We initiatives while challenges. cost have goals, improved term. The our the here these a our advance guidance reduction just in of made bit further the will slowing us confident in to is adjustments near some execute and profitability towards environment in well that benefit enable we remain and So, cash we modest to macro flow our process and XXXX. will XXXX deliver of recent the to half us reflect second continue

segments product capital we both that exit XXXX. return we despite as achieve current of headwinds, to invested track So, on believe on the our double-digit remain

years, We variable conclusion, see over will more profitability expansion as couple launched increasing of improved contribution volume and and you of of the new further also programs are next confidence remain we growth margins. challenges that In through our stakeholders confident products both navigate as sustainable, continued remarks. to through for want to our execute plans thank we and our and value. This customers profitable and to on our all these and drive continue concludes prepared our our support

So, on to let's move Q&A.

Operator

[Operator Instructions].

Your Mike first question from from Capital. Freedom comes Ward

Michael Ward

Just couple of a things.

been have actions those actions, restructuring the On correct? completed,

Jeffrey Edwards

Mike. quarter. third the million $XX million of Most be have final I fourth in been and We the between $XX described completed. them stages the in that, and Certainly, of going it's pickup are to

We high confidence. have a level of

along right moving So, with it.

Michael Ward

your FX, of like X%. above we're And the margin? of was excluding double-digit second rate that now, The right at we're is that margin towards kind trend thing, getting performance, that go-to

Jeffrey Edwards

this Yes, again, Jeff is. Mike. is Certainly

to march double-digit there next be towards and capital, EBITDA invested continue to We year. the on return we expect

Michael Ward

Jon, over understood make cash I you if and to sure want some go flow just wonder I comments, it. of I can your

that the said flow I to for Is be it expect think correct? you neutral you cash that year.

Jonathan Banas

pay the third both had we making million we're the business, that's incremental our will the in $XX door. out straight operational December about that for cash confidence the lien go given a the we've gave do however, to I the would my the would Based negative. year have positive end our comments the to the of slightly We're flow this looking be that flow for now range. free earlier cash year, at point be a cash expected interest the If and first performance we Mike, estimate on in from chose is range, top coupons item. But, that worth and notes. And improvements line at cash

interest capital long that's structure. for in our However, the the term over best

free positive range slightly negative us to flow. on took that So, cash the slightly from

Michael Ward

items. there are And other then

cash I you cash. all $XX then see second the taxes, million $XX and cash that I the restructuring, $XX you million, in see didn't have all quarter. second Is that's think their didn't anything half? in the in net I assume the million, I second half. $XX million, restructuring

Jonathan Banas

were We running out. over years from some still No. programs original had prior carried that were that

spend did implemented months restructuring recently the some we So, as dollars X the in actions. first well as

So, that's restructuring spent. number was already $XX.X the been million cash about of I think

Michael Ward

Okay, in half. the first

change assets, that first looking the see used in million the data been statement in capital a you working in you half. of see I'm it does that's $XX have was assets, the net far, by operating half. released income if Normally, and cash at So, and that we our that the in negative thus and some turn positive liabilities, provided second would

of Some that to these other that. in items there keep are going are

right? won't that get Is You normal the recovery.

Jonathan Banas

Well, the million the receivables favorable December. of to and do always negative. by end terms $XX tend inventories definition, just of second QX the by positive was be as year. We half in the half as collect back working half to reduce of about we expect first be QX in the we capital our

So, an normal that there's info with typically seasonality. you see

so, a And that bit. mitigated think just trend It's I continues.

Operator

Ludtke question comes Capital. Kirk Imperial from from next Your

Kirk Ludtke

on question I Well, at EBITDA $XXX doing least margin right? of without the a Am volume guess, I on that up million wanted EBITDA to math margins. math, imply XX% the XXXX. the follow just Mike's exiting I growth would doing

Jeffrey Edwards

right. math the doing you're Yes,

Kirk Ludtke

fiscal increase So, the 'XX that's an $XX guidance. million from

at million new mix? of So, mentioned, least you've products Is you I think the What's saves. cost the other XX%? $XX that mentioned

Jeffrey Edwards

the Kirk, million this things. $XX of to $XX couple that, a in portion. was that is mind It Keep million year's

is the better out many as last of $XX they're programs launch we're a I the years, the to for that place. And, make new million year's we put is save that result reduction organization in our with new time, the to money. At willing talked in as couple $XX this said and same salary cases, because portion for. cost able replace is of Next the the to that we've latest cost margins about product they we million of customers helping technology innovation because ones existing pay as

level a is for on to contribution the hiatus here. to business that, of of a significant to fluid it's years company, addition returning while couple In the been

all in it. finally, And then we're as big profitable a that's well. so, regions part of And

those and execute cost side managing of done because well. have So, whether quickly. We the well. us. It's team to also side, support help Cooper. new we're fluid extremely EV, the people price which like to engineer at or able that's change significant especially business, them just the costs and overall and for manage extremely hybrid, because ability supported the ability of strategies, the were the products and new side to that of manage dynamics. And save talking we not on the been what it vehicles ICE, into and terms to the about we our way adds the content fluid it in for technology we done the customers time, for way money We've get the market And same in help our their them the them,

we're So, side; it's of managing inside managing the We're of those. we're vehicle per really cost content managing and both price with innovation.

those And things So, whenever X driving overall it better. will that volume, get the we improvement. even the are be are

Kirk Ludtke

least it's in we're fiscal another 'XX, 'XX. million $XX $XX sales, of million in really at about So, million fiscal talking $XX

Jonathan Banas

let This Jon. $XX annualized. that. clarify Kirk, me It's million is

we've this year an million next So, year. million incremental $XX and $XX

So, savings to the $XX million. total million $XX is run-rate

Kirk Ludtke

wins mid-single digits? organic Is more low that? your digits, single you than quarter, would new And it growth Better net how rate? business this describe

Jeffrey Edwards

America, with tried we're latest mean is think give I you Jon the continuing the to terms the even associated Yes, it. in in walked in market through the projection these continue crazy his he outpace prepared here of volumes the times of XX.X in way units. little how And come million North to you math sense down. I remarks, a to

outpace continue the we to market. So,

vehicle think it's been hybrid about clearly we're that the So, by business just We at we're to the significantly. or history, that XX%. yet represents with historical comparisons in in over about number for increase fluid do per is least And cases, go look going all you content that's up defined customers probably versus volumes going that hasn't expect that's introduction growing by at same. hybrid told. And pretty significantly coming business to our our the I being us improve our a when because percentage what that are

haven't think X because good that I over we next don't the The did. that quantified X years the going customers, going the what I beyond news exactly we've very here soon. are you or what in really been for know for yet told that's So, reason we macro is to to sense our yet product be but hear plans really just we're

Kirk Ludtke

I heard cash think I And December? in make both you'll bonds on payments

Jonathan Banas

is that's to not Kirk, This the a lien on Jon Yes, do December elected lien again. the we've both the right. pick notes. straight first option, going and so, we're in pay third cash

Operator

Your from question Baird. comes next from Brian DiRubbio

Brian DiRubbio

Just a me. few questions for

long CapEx Just low sort to back your I million last obviously, on model. in The be what $XX to in that had thought XXXX. And it the process it you of CapEx deploying And low? had can $XX of can prior million. But be level? spend, the low time It why back my how versus guys today you're $XX at terms for how years? XXXX is think or explain capital was that you going can differently maybe that million,

Jeffrey Edwards

that. couple are There different components Jeff. is this of Yes, of a

better The plants. first going the into that one at is we're designing our definitely getting are products

historically less require than they did. they capital probably So,

everything they try the So, with capital the our that to manufacture do off engineers foremost, hats to to our product engineers and think manufacturing reduce to working I can first required to closer parts.

a like we kind of operating volumes just such business cases many we're at number low Number there. have booking we're China, the new filling fact in we're of that's So, up one. lot is what that where two

for term. that's an so, here us And in been and the medium short advantage

just, cost and have accepted years think will less then through I or invested would and that cases, year. payback well. And X.X things X-year many finally, as than historically, a as continue pushed to that we relates year that next reduction in on probably we've it then to accordingly. We've

achieve a good in had has it our teams think, that capital reduction because still it sustainable for spend to that's of doing going and from think a impact that of the been more they're thing I behavior, excited they're pretty view company. And, things pipeline there a quite to cost going forces a I we're because what have on So about. point a laser to are that's the if forward few positive focus

So, to reasons kind the continue the those grow are business. we certainly of

a customers. book lot our to with business continue We of

answer I So, would then to to going do for ways your question, figured that want forward. forward? X% you do but better. And capital we've don't like we starving that to we to closer that see see I it think to going X% than it where mean, we're out finally, number

So, let's see how we go.

Brian DiRubbio

the is, start balance current we is year, structure, notes capital notes can of lien still the be? and you out lien I what immediate next question cash as third here think on we ahead figuring will what that first so the plans of next time but go the interest cash Just I know sort the have guess don't do of you the about full said pay year.

Jonathan Banas

see later around of But the as in liens file XX-Q balance Hi, Brian, June million. our full first $XXX was details the today. you'll we'll XX

notes old The The on stub senior third at liens were is million. the million. $XXX $XX

Brian DiRubbio

me. made, and guidance didn't for at change press in production, the question U.S. you for obviously release. that comments that final Jeff, a auto the I of just estimates then the given as looked your And some

there. guidance sort where to reticent thoughts understand between and love on of cutting to they end because your the your provided. of just of sort that manufacturers production trying are do are get risks Just I'd has that see of that Or you business? with year? impact the their now current Do the U.S. the you to

Jeffrey Edwards

for of I think next a half that the second that we out ball Yes, to the can X Brian, that. just I year, we here. crystal everything with specific months, my this. had I'll answer in confident pull We wish are But so control. for start let me this

Our set. in close pricing reductions are to as or The they cost can as be. is in

well. operating are extremely Our plants

control. any don't can what I anticipate of we surprises So terms in

As to mentioned, projections America North XX.X down the here are I units. in million

I we think million started the with units. XX.X year

think go in fairly volume projections had were with that. were million all actually you 'XX conversation then I forward when had when below guide were the We're about that for talking about January, discussion, thought. saying top everybody gone line you we worried we the to we $XXX with I a If we'd now back volume had this we conservative

that I'm So, any the going taken the way. have hopeful up tell the lot up to are that well. FX I'm forecasts isn't going headwind forward off Jon are business out and the live the of everybody's that that's hasn't bottom to is that, the anticipate there challenge we related that I'll revenue significant of that you, overachieving make we've it. feeling business There part to a for guidance. of bottom provided. sure the in the same seen performing mentioned We they're see. But line. We'll suggest money extremely our been and our to that's releases

And from about year. actually that you bit It's think turned we this a Jon discussed, because like be expected when material inflationary to into pressures things nice a Historically, of to so, a tailwind But headwind. a point that X.X%. And we're we've view, taking back price. X.X% we've cost of given virtually done then, such made a up. managing care we've job all of

a year. years, back give the And COVID we During actually X% it's last took for us. this positive that year, below

have add a all we up, So, outlook. second-half that very you and bullish

very a feeling We beyond. XX bullish and about have

it's going As we get my back, some friend, be a good as soon volume thing. to

Brian DiRubbio

question. Just a final

see updates on any near Fortrex, be the that in future wins that of compound to deployments and other any any other you announced?

Jeffrey Edwards

weight in recyclable. our and talked a quite that And I for quite have remarks. to prepared pool bit about a continue lower We

Jon's Nike be he And our a the on. sealing morning, actually continues So, if it feet I think driver third it business. out for shoe could announced that's you see has to there. this And

there thought to hopefully, of again, to continue we bottom over we results So line. which But a that positive the would was your that the the see becomes to more question. a horizon contributor we Fortrex, related

Operator

Your [Operator Instructions] next from Financial, from question StoneX Briggs comes Inc. Ben

Ben Briggs

Congratulations on got this of the my answered. vast The questions majority margins already quarter.

is confirm, last that pick But So, just on the thank option an either you you. to correct? had quarter housekeeping. to This bonds,

Jonathan Banas

actually we the to June, In make Ben. correct, election coupons. for had December That's the

make election So, to this was that last the opportunity

Ben Briggs

quickly And margins. then on just

third numbers of quarter the of you retroactive XX.X% of 'XX So, gross quarter, in margins had that when kind came some payments. at is which this excluding one highest

on this number of forward I XX.X% expect modeling about this? XXXX. Should kind since we margin double-digit, these highest basis, the going is gross think XX-ish like think XX-ish, when a numbers we number

Jonathan Banas

Yes, this is Jon. Ben,

P&L, variable seeing I manifest cost entire think we to on and Across that continue area, the sold the for continuously rates. Significant to goods cost that's margin. it. look and improve a manufacturing within into going of new launches, initiatives product to margin themselves on attributors purchasing the therefore, uplift are lean all the fair up at gross to the look opportunities the we're margin reductions way where contribution

already. look So, should lot in those XXXX, improving to a towards see Jeff talked end to as margins levels even we exit of you about EBITDA continue as double-digit the

Ben Briggs

And I of a ways, but then couple one me, asked for kind different got and one I'll us try last you know of time. more

on last table? the as had refi XXXX. the the call, On to in think on potentially that you potentially that was you still I talked table global a Would refer

Jonathan Banas

it's of conditions, going what in QX environment course, XXXX. interest of market There's like in deals the always to of looks the markets, Ben, capital on be rate acceptance heavily starting potential, dependent

is As at provision the end done a of of our non-call reminder, XXXX. January

do QX refinance. we in opportunity So, to forward, have that

subject environment those overall conditions, production conditions to to So, industry the automotive go market market. will and us enable to

next has company focused capital those in already look on XXX% see But making our to, things terms of we're combined, structure size the So, alluded and how it we'll manageable and all footprint. as things towards year. of more a Jeff

we're improvements leveraging next the metrics sustainable as to market. the So, KPIs leverage year, to sustainable generation, business certainly as look those in we'll we flow and we go and profitability have the these making cash and opportunities that

Operator

the Roger this turn I more back over Hendriksen. would time. are now at call to to no like questions There

Roger Hendriksen

again. Thanks, engagement. free right. to a in This for the your everybody, we the questions conclude appreciate questions the up come reach out day that much. If weeks, in will or very please further call. to and our for are We directly, All your following later conversation. Thanks participation other me arrange and can feel there

Operator

Ladies and gentlemen, conference call. today's concludes this

You may Thank disconnect. you. now

Cooper-Standard (CPS) 2 Aug 242024 Q2 Earnings call transcript