CPS - Earnings call transcript Q3 2024 | 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's Third 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, sir.

Roger Hendriksen

Thanks, Sylvie, and thanks to all of you who have taken the time to join our call this morning. The members of our leadership team, who will be speaking with you on the call this morning, are Jeff Edwards, Chairman and Chief Executive Officer and Jon Banas, Executive Vice President and Chief Financial Officer.

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

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

X on included Slide Reconciliations in Exchange with Securities this more periodic to included information that Commission. This refer the financial appendix measures directly non-GAAP in most measures and contains the measures. statements, filings of forward-looking For presentation non-GAAP presentation ask presentation. and we the you their the the of statements financial to GAAP also company's the to comparable are

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

Jeffrey Edwards

appreciate quarter business our the opportunity and Roger, forward. outlook Thanks, to results on our provide certainly third an and update the going good morning, We and review everyone.

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

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

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

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

performance If stronger, safety plants the addition, find be better excellent. our In to I word, continues I of a could would.

just we safety it's in more XXX,XXX I the topic And worked. X.XX. to hours That's During you outstanding safety and a performance the best incidents per benchmark moment. to of provide some an quarter, our of want the with third back rate achievement. ever well had reportable of a total details come X.XX incident truly world-class And below

lean quarter savings optimization, manufacturing we our delivering purchasing and programs. cost In terms savings through other $XX and with million cost another teams had solid of initiatives of

second In initiative. most in additional the aggressive announced we the is and initiative from quarter driving addition, this the recent third savings has an $XX planned in million savings. In restructuring implemented quarter been alone, successfully we the realized

that's $XX we're helping so and our $XX annualized X capabilities finally, world-class during the on to million to of savings And the continuing offset that foreign unfavorable are lower service, persisted volumes achieve have us headwinds award-winning innovations fully expected of in months These million first the year. And win leverage the pace technical exchange to new savings. to production and business.

third of net our In us We're battery industry, new in XXXX, pleased programs, during to their complex fact, in increasingly technologies awarded and million hybrid, the new turn to important an quarter $XX continue vehicles. business most ICE, new electric to some develop were awards. help for of dynamic that vehicle and we automotive and customers design including

the zero in safety month incidents establish worked has years perfect were added everyone. In employees made the And global to employees continuously several library. the we've ever their of Slide leading teams in in to making driving of best culture year. entire global company tremendous the safety over safety over past operations so them a goal I portal those want from our conduct communications to collaboration and annual safety new fourth our provide focus of safety the turning and our record videos X around earlier recognize implementing team through on location activities safety true the all our total of back performance the plants practices safety all our of also we their thank available around global with all and years. re-intensify far company. a basically year, all extensive safety And which around encouraged to to of to and the result months were incidents most And quarterly our outstanding And of best this existing incidents global team, our X.XX. facilities that company. Each our were safety this to September, I our engagement learning every our builds online in for goal our our employee the and were had the throughout reprioritized people training rate on communication shared a encouraged safety I and you, day the commitment own the continued for to for enthusiasm want managers, month. world. In on Thank that's month single CS this the Connect. their for plant activities and a a entire and that and are the TIR conducted first call and our to incident document outstanding I quarter. with each at of mentioned just as X.XX. we we on zero year performance the XX the importantly, So had And to brings that And of go want had our world we seen safety topic a ultimate safety few to safety safety details improves top again all. improvements successes. more our priority certainly focus X. team, And The X

X. Turning to Slide

being in also prioritizing products, are for priority addition place recognition our world-class critical we we and garner In of continue leadership steward good high citizen to customers to that our success, technologies, the with providing our on and a And a to environment. sustainability. corporate outside and service employee safety

in most sustainability. the and company and has receiving recent the seventh by the earned the pleased is year in vehicle Silver Medal In recognized we XX year our by eighth the be accessories top medal this in leadership time quarter, fact, the X% in XXth months for of top companies of past This company the that score and percentile motor improved XX% the the our to and EcoVadis places were the again achievements manufacturers. Status. Notably, the parts assessed in EcoVadis were

and value for purpose, create with we So company all to sustainable values products stakeholders. our that of creating consistent our and solutions committed remain

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

Jonathan Banas

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

a the were inflation. production foreign basis, purchasing, same settlements we and and and to of initiatives. of million cost foreign by positive retroactive the by of the net lean included U.S. the in last $XX loss timing quarters XXXX not of contributed the approximately partially adjustment and in the volumes, of of well plan sales quarter quarter income third The last commercial The the quarter of divestiture lower by were termination technical compared third from our and were to exchange, The at a initiatives. On XXXX, a primarily third exchange second settlements GAAP of of XXXX. primarily These the that Third reduction general $XX.X million the to rubber business savings our offset $XX.X to $XX.X including to to driven year as in in sales. Adjusted third the year. million, of compared year. million the of quarter this this related did in the XXXX mix, the quarter quarter of million first restructuring third last the during a recur $X.X decrease occurred negative recorded in third was charges unfavorable related of in was Lower XXXX. we decrease of manufacturing, to quarter U.S. as result also and EBITDA reported the change was driven negative year, Europe $X.X drivers in that settlements million $XXX.X quarter earlier year the restructuring our X.X% related the that quarter settlement net of volume third in and million of year unfavorable to timing third our million level year-over-year pension commercial in $XX.X last quarter year continued the compared charges

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

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

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

and inflation, divestitures, been months million our as impacted X partially of to was months of gross $XXX of X by an same price XXXX. Adjusted foreign at to the of and the lower and our of to $X.XX loss offset in for the settlements X $XXX.X efficiency exchange, savings million the first period yielded Despite improved first primarily commercial timing in year, months and last first the sales foreign business the $XXX.X actually margin million the of quarters the year, more X the in $XXX.X commercial the due months last year by adjustments, XX.X% improved net having unfavorable to loss a cost EBITDA improvements. Net net For first compared XX.X% of of first in X exchange. X XXXX. for months from efficient mix million, first XXXX was compared year, sales, lower of down came billion, and profit volume the

million per last share, net loss $XX.X line items, special same adjusted the Excluding $X.XX the first months approximately or year. X was in for period with

the provide our quantification charts third Slide to factors on The results for and XX. XX of insights the key additional quarter. Slide impacting Moving

from net by Rubber related million unfavorable last period was in and the sales and same XXXX. further of the settlements foreign mainly and of reduction $X Technical $X quarter million reduced sales, million reduced a price to the customer sales $XX volume For The the including adjustments versus the by real, third impact exchange, year. a versus net Brazilian quarter mix, divestiture

Savings initiatives manufacturing initiatives lean million in EBITDA, of $XX added and $XX year-over-year. adjusted implementation For million. the restructuring purchasing from contributed

However, further of while by commercial the other and the related amounted $XX costs salaries, exchange, Brazilian price million real, an zloty, million. Colon ongoing to to Polish and volume, headwind million, for $X Unfavorable including unfavorable inflation, foreign $XX was and the transportation, wages, primarily energy, Rican mix, adjustments net EBITDA reduced additional general Costa headwind the quarter. of

XX. the to Moving Slide

sales For Rubber pleased the first business first year, the the unfavorable negatively last X inflationary the from volume, adjustments, We're of mix, million factors of and savings. exchange, Technical amounting efficiencies and million initiatives divestiture $XX foreign and price months $XX X $XX and by in months offset volume, million $XX in million impacted million $XX to manufacturing in partially million the restructuring sorry. $XX in benefited lean exchange EBITDA by pressures. and $XX unfavorable These unfavorable of continuing adjustments, were million general unfavorable year. Adjusted â€“- net positive purchasing million foreign in price $XX from in mix, and net were

XX. Slide to Turning

liquidity, Looking a at versus operating in and the cash sales the $XX quarter improvement an and approximately the volumes. production was XXXX and activities given cash XXXX, third million flow provided our significant net achievement of lower by third of quarter

improving the million, positive period As generation, with million. the conservative of approximately the approximately which million this XXXX. We're of have had third approach was a to pursue our outlook future. Based we cash generation and believe $XX balance capital remained quarter same growth approximately $XXX we September my future XXXX, the ended our us the $XXX investments net $XX XX, of our improve our availability bolstered prepared sufficient we for cash we improvement approximately to in pleased have undrawn, approximately improving conditions. last to cash for total facility, positive despite work $XX a CapEx million as to flow we solid on capital profitable year, improvement free year. With generation, resulting profitability quarter ABL million in future. That cash vehicle we of of $XXX while and Combined mentioned earlier, compared our business help in third of operations our as liquidity with cash light future execute and that million more of structure strategically liquidity to And sustainable objectives market for continue position to our quarter on more and production, on final expectations in we the do weaker concludes efforts plans have this our the comments. look will foreseeable have favorably of will our still believe an

to over Jeff. turn back So it let me

Jeffrey Edwards

remaining well have an in few Okay. with for year call Jon. minutes few our highlights as Thanks, our this our on strategic full like update regarding imperatives as provide the I'd on comment key And to you we morning. guidance. a

XX. So Slide please turn to

X leadership that As you imperatives maximize long-term would the spoke to on responsibility. team outlined value to we already strategic the here our earlier imperatives company. corporate last XX. My see expect, world-class our Slide these outlined can on remain of key laser-focused year and our And execution global comments you

So I'd update on provide the overall actions of taken now the to we've like significant company. to the an improve financial really strength

to current are. So do over cost in we of cost chain savings dynamics Slide lean the $XXX other our challenging industry turning efficiencies, our reductions, XXXX through even XXXX, and XX. global manufacturing many From achieved certainly to improvements obviously, and, million initiatives. sustainable to optimization, in us yet more supply team And require fixed

of we've us So to on XXXX, savings for year. million far successful the aggressive of $XXX savings cost million initiatives, the putting in achieve track full through in overall $XX cost implementation several additional an nearly realized

innovation pleased also we're cut for is to that's prosperity. our while the way simply why a And is long-term savings So imperative cannot we're strategic that with cost we us. achieving. clear It

not world innovation. Switch us, X to our quarter, recognized benchmark turn innovations that market And industry recognized year. mentioned And pleased of that are are X we technology to the celebrates year. named innovations XX. last of we our recently allowing some that in identifies these technology. key new are the Award. is these as door competition proud innovations those Automotive in for them for FlexiCore annual and named industry. PACE And were our especially very but Pilot recently XX to latest We're eCoFlow seal the X, PACE the we're and please as thermoplastic So game-changing this finalist the the bringing News automotive really a Pump this we're have certainly just Slide And were around of innovations the technologies as finalist and

and lot being to to but And is talent a certainly talking about I of that product engineering And see our and the the So I among the innovation the products it's named just the safety me, plants, value performance to we in services spend life accomplishments the the and differentiating the time provide teams engaged and of are our a our know are finalists to customers. of testament that's teams success. believe very and of part fun coming here. team

receiving and excited the So we're innovations, we're but really about those being that our already of not only excited that speak. as we customers many about interest quoted are from significant and fact these

adjusted margin of we current our our cost outlook, in execution Based to to savings conclude in $X.X line will we allow of and at continuing few our industry countries do market results inflation, full in Slide drive in everybody turning to initiatives expect, year-to-date challenging that, persistent volumes, with the year headwinds despite conditions, all our But key with all guess Clearly, these we're outlook and profit for So the production that. that comments end I largely and certain us expect morning $X.XX flow of with outlook guidance rates very expectations. of XX. to view our on lower-than-expected EBITDA for that continue and remarks day, kept pleased we year. In the and is to be familiar on cash billion. full the sales the original in and as with prepared I'll exchange we our unfavorable conclude this billion now year full a overall, has this range from successful challenges continuing year. our and face improvement

$XXX year our be what EBITDA, year $XXX in to guidance would ranges, our adjusted our adjusted million. in full the of At to adjusted we've For full range midpoints higher million was issued implied it these margin initial February. than EBITDA

manage business we flow internal ability full line In to growth with our are cash targets. confident we in addition, guidance, specific we slow cash adapt flow in provide our believe on environment. track and remain don't our We still to year a in while original deliver

to we the our Our current segments have track remain cost capital and new initiatives continued our And with us believe product on headwinds, are support awards. Despite we reduction invested that achieve to both as on working. pricing double-digit customers of business exit XXXX. return

to through see want We also and as conditions remain both couple and our of as drive and and customers further move our over profitability, programs stakeholders products to prepared continue value. This navigate our sustainable, and increasing years, confidence the let's margins. In for support your that so confident market volume closing, more I plans execute our growth, continue into through our of all thank remarks, certainly of to are we improved new our we'll variable to Q&A. contribution challenging profitable launched and continued next concludes of expansion

Operator

will Capital. First, we Ward at Instructions] [Operator from hear Freedom Michael

Michael Ward

When you if get the look for to at that guidance talked the double-digit to of quarter, upper you you've that you fourth you gets that What there? right end back range out your go and needs to margin about.

Jeffrey Edwards

Well, manufacturing executing, through as on said, even to the would mean, the way for right? I'm additional just as I here. plants, we The way going I we're and in the we've cost just knock way quarter place of we're where fourth exit the year, bit head be wood. XXXX. be we flawlessly thought a as our we reductions we're executing We're in our Mike, ahead entire XXXX, with put we've it that there we It's said

back shows the without just would volume we're But up. in be well as pretty certainly it. would the ever past, it So friend doing you we've I meantime, if tell said our that in

weeks We're it. that whining are type team continue do of of what despite sure you're seeing talked is. driving last and We're about the So couple to it echoed. here the the way you've just challenging results to the not I'm stay to we also and the I'm what in conditions that is that has can proud of it engaged everybody they control very But it. doing

Michael Ward

So look as X we through through we're month October, X. the

you're that And confident guidance. so with

range, into so And certainly of end we that be seeâ€¦ often can you -- upper get as good you that would head the And towards into if XXXX. momentum again, that

Jeffrey Edwards

the feel agree. we Yes, way. We same We agree.

spot comments on. are Your

Michael Ward

X there quarters, currency, relates to far significant headwind. as as near-term the last do FX you can anything Jon, it Is mitigate pretty some that to relates you've had hits as as on the impact to from it results?

Jonathan Banas

Mike, Hello, something currency. that And headwinds with so where that product, negative in cost-only dealing related not is we're really, FX its same our The been Jon. manufacture here. FX the the for we've first us, primarily X we impact is selling for but currencies, to months

for And is us. so think where big a for Mexico when with about big peso our same with us, the Poland you in manufacture, exposure exposure and koruna. Czech footprint we is zloty a

Mike, So as we XXX%. and variability as that do have of can some you the we it. to only make we you you're good rate mitigate And impacts a the thereafter hedging but put that, hedge never -- effect hedge to what trade do obviously when program, the into

certain extent customers currencies, amount but have in those minor of our back do get them that hedge, And goods manufactured on and also overall we our tail that's so a to exposure. in quarter-over-quarter with we with that the programs cases on recovery to go

strengthen to of despite QX. last start still because exposure those tell as So in we're can. We dollar bit little big the strengthening it going those doesn't year. currencies we're appear be a to you, It many mitigate. sense of to here off QX the makes think expecting in year-over-year, U.S. see of we're will of currencies an footprint against strategy did doing you I to the and what tail we

current So see outlook that's as it the we today.

Michael Ward

to any coming. step the your next sounds make And you X -- it out or couple on we then have X Do months? environment. rate some good declining in with more refinance go just flexibility a lastly, as to debt changes over possibly the we're had like And a are a We've down.

Jonathan Banas

Great question, Mike. Yes.

to those of that predict At But at So expire third January. a a rooting of repayment then. course. lower be more quarter capital flexibility. with a our our the going the industry lien to what we're refinance In look yes, first associated company. But XXXX, receptivity might the have largely so we and to to point, not financial look transact. There's only what in of our non-call the that markets, the end offer interest operating ability of the of as ongoing still on But rate of provisions refinancing if cuts, the our like short term, to we more are for we rate but premium flexibility capital there's on underlying depend notes you going the opportunity for can't like and both lien to state and costs the is environment markets more performance. course, going that wanted the lot well we first described, as hope

approach So and and for looks that of all for constituents our of we'll list and an provides we sense explore overall capital lower look to our flexibility. options certainly a cost broad that makes always as of do

Operator

be Next question Capital. from Ludtke will at Imperial Kirk

Kirk Ludtke

on business market, in you follow-up the a lot quarter? you on about in angst your are European-based your third largest maybe seeing and not EBITDA the what can And you also, in expand Europe conversation. North you're geographic -- in but both of manufacturers, were A Just America positive Europe?

Jeffrey Edwards

we very macroeconomic this Kirk, markets. this were in terms yes, volume in headwinds have wins positive your morning and is Jeff. that are question I and The here are other of similar Europe North in part the is, the answer Jon as about last in they America. Certainly, to of both spoke

for on with these to with footprint, see fine. the going of continued both it the the to aligns a next regions costs ones us conditions regions. love focus that confidence that profitability our cost both fixed in we to volumes. of level in we're maintain of few our give is But a be today anybody level we back level in the market enough to see a continue and and think don't getting I So years And the

expand other tell key thing product globally. products doing our X I very very groups of with question plan They're because are especially to Chinese on doing level business provide. manufacturers, business geography well we're in their in domestic of the that would the winning with The interested really those and and your that quality taking we upon us you is technology

to the continues addition in We're that's and expand that's the OEMs do a in them. local And us way around quite Western to from and They're the market we is hopeful So having also Chinese. business continue very going. elsewhere they the the shift China we're with then profitable well very pleased to shifting how in as China production with to world. taking from

we're then close the that well. And about some positive growth Cooper-Standard. by as cash is would seeing pretty contributing talked I profitability American business for and So those to with making saying years we've money nice relationships South and also

think of we're quite So well. from point I view, doing geography a

Kirk Ludtke

allow Slide I'm to Congratulations if Or that allow ahead new front new XX, would interesting. line? take of anything could mean? products Or say products. PACE and on competition? is can the there really you to products they are what top maybe That's drive award. those share stay that to that the hear. products you they you the be great curious pilot the you on Are quantify that

Jeffrey Edwards

Yes, sure.

And right? speak. eCoFlow fluid I So we than of product these It marketplace the helps business; fluid as a in think, it's customer, so our already on quoting, of our we're for XX improve helps systems. their management because more overall the the great it

that while about overall they're it system terms the product their And producing. EV improving that the performance. think So system reduces in cost of overall

and it up goes substantially. Cooper-Standard, innovation. then per that per vehicle So for we're vehicle profit our -- course, And paid for and means of content our

-- the it really saying it those want we are it's us. are pulling that and So ones customers in are helps terrific, because that ones the the

really product as well So that that's what is. The aerodynamically is as outstanding. aesthetically sealing

exterior so these ways the to on of reduce the money vehicles high-end design to And noise news way. and lot and money make overall suppliers acoustics they for on, to the it's in therefore, on. a standards to interior. perfect customers does is make the road they of a big And systems of want improve look continue sealing They contribute streamlining those to the that good this vehicles can as

Kirk Ludtke

And then the or the you it? the the of differently? it was CapEx run year. do materially you CapEx took forward? once different Are an something what's just And over -- opportunity, course than then guidance saw Or the was same? it doing you came going also, down rate you Is to think it

Jeffrey Edwards

This Kirk. Thanks, is Jeff Yes. again.

would that in, level are have we differently. they products related of guess, capital, the business, a don't that. we same definitely capital in looked every things of as So job And aspect of, past, require I teams designing the past terrific doing first of to capital the done just probably that the reusing did. have all, that once They're also

of within our within benefactor. product, but only kind manufacturing and drive capital innovation to the and overall that So of continues not is the ingenuity a cost

in this about. a bit business And below will a guiding talking company, right despite level this we're year million year, even level little next as new we're all winning at that be CapEx. so probably And $XX we or that that around

this what But I'm that just around really always the standards quality pleased. what really with It's teams I'm and plant have works, giving to shout-outs So doesn't, up what understand keep trying engineering we between working. our safety the excess, plants things maintain and teaming the to managers. and what's and enough our joint. to our teams going product is

I year going we're spend percentage would answer is to going And your so to again what the of next expect question, spending year. this forward, CapEx we're that

Operator

at Next question Baird. Brian will be from DiRubbio

Brian DiRubbio

questions me. for of couple A

don't level year-over-year, take excluding to you million if an quarter XX, those by settlements $XX Would by Page $XX $XX then million. adjusted XXXX to XXXX basically third sales it back going get apples-to-apples set Just comparison? the performance million I'm of to be fair company's commercial EBITDA of mind. down to and trying more

Jonathan Banas

Brian, Jon. it's Yes,

and appropriate $XX impact I of to related and pricing retroactive million for top couple XXXX. that EBITDA dollar would the that was really think line of because quarters first both dollar the that's

perspective, you that. So wanted see if to price will, normalize, if from a you you'd

You the do for the it's obviously, X-month same the don't because, on in need to period. full the run X rate months

Brian DiRubbio

was are you payment getting there. settlements year? onetime that So And throughout any commercial this

Jeffrey Edwards

introduction ongoing production that marketplace Yes. There of those to in volumes base. of continuing backdrop and adoption We're supply customers very and what tough with EV environment. pace into engage lower new means the the all for around, still products the the conversations is, constructively, the of

incredibly manner did that we work So our for capital to continue work still appropriately serve base years teams there but to and our the products, that the commercial in only hard, with last couple see customers. constructive to our are get that's compensated engaging more of not ahead our customers

Brian DiRubbio

as then what's Fortrex? guidance, Is fourth Just trying expansion. to going gross there? on seeing it you margin wrap And think expecting Are be main my margins? driver Are to around the head any about implied SG&A the the cuts? you quarter payments we

Jonathan Banas

Brian, Jon again. compared at chart the it's on bridge XX. to Yes, When look the Slide year you full guidance,

expansion offset of or in place run so by million see where back profitability we inflation mix look sequentially. a that $XX wage to The suspects You full May ahead. continue and in and profitability that's benefiting that another be and will standpoint. usual manufacturing all more restructuring going as we purchasing put rate. But to of effect soften kind initiatives volume the deliver certainly the we see of opportunities from are into the the program can We lean of

So see inherent in that's those buckets overall the main you'll guide. are the

Brian DiRubbio

was paying to third currently, the coupon the of just last cash quarter the you -- the made including then, you're for month? day pay coupon notes confirm, all payment And the a that at cash outstanding in for

Jonathan Banas

off. little a timing your had bit you No,

third and first due lien coupons Our December. in note are

Brian DiRubbio

was Yes, on sorry, focusing the I XX.X.

Jonathan Banas

well, the both due month, the interest also middle third pay in and full so December you're that's as liens. No, correct, those of And on of we'll both tranches. first cash

Brian DiRubbio

I'm clearly, they're looking that. wrong and, at Bloomberg on

Okay.

Is it a see like work this the year year? tackle think hit, you call to for what punitive? this it. refinanced? versus look can then maybe year, do structure able aren't opportunities get. where So you in capital through and you and premiums that something existing well, this refinance you being then the premiums get to is call are will current think about in next guys another just to about that coupons the Got early mean, you this structure as rush And how you much to can of I you as when December. as -- Or call would

Jonathan Banas

improving that's entering what our you existing into those structure our, look business We'd the planning predict load, on like. can. as full But clearly, obviously bring can control, goal. to we're describing interest why of as that soon for profitability And we And what been do conditions call will Well, cost can't and call I what the the while Jeff We're capital to capital as I'll planning continue if we will, this we that's cycle. things our not like to and levels. generation have our continuing the down cash managing as we're or on. market all far overall

control can't better. to sooner sense the with But can when we parties. all makes market phrase I'll conditions we good use that for again, So the go

Operator

[Operator Instructions] StoneX Ben is at Briggs Financial. Next

Ben Briggs

going take it. quarter lot at but swing 'XX more I'm 'XX fourth got A answered, one to to The fourth bridge. mine of quarter

'XX. breakdown are be? of the more bit Can us fourth you kind So of expect. I to at granular here. about, quarter a the get quarter number of versus little that's $XX guidance I a the looking of million as think, fourth drivers that we for midpoint of materially your to what give exactly that And a about going of I'm up should pretty

Jonathan Banas

Yes, Ben, swing. I'll take a

place year-over-year and the lien we supply lower base both You'll the the fourth our continuous manufacturing will quarter from the to purchasing we've see in spend. year-over-year opportunities as to aid business. see attack overall material, continued and improvement That the that continue initiatives will got that benefit initiatives in

So plays. not that scrap comes can from also rear cost or rates higher-than-expected circumstances actual execution and other unforeseen comes with that But up. saving flawless incurring it

operating Jeff So the team is well, very, as described. very

another year. So isn't to the as $XX restructuring $XX I -- of of think QX profitability see we $XX million in of more million will program side May. in have $XX announced it in last you we million That that well. million that savings its from opportunities that or Year-over-year,

did top there to a all always incentive take to at QX, notes go if year-over-year compensation we So well, those the and look okay? In compensation And as program charge of we QX, up all well. back that arrangements plan. across our contributing comp last as incentive are you

And us so are And just year-over-year. tailwind for you. normalized things picture the for a that you as can call year this that paints

Ben Briggs

pretty and history, And that there undertaken have volume Would then unwound you have in got only those question be Are if effective? of have the very next material been obviously recent Or is these thing that ramp maintaining production I left. necessary cost you of any guys wanted initiatives increases? are the cost-cutting still to guys nimble ask. which to while very, able I've any to And when the cuts? were this

Jeffrey Edwards

is Jeff. this Ben,

If with, at per anything be we're forecast next needed you -- description. there the out look wouldn't have to that's be doing business there that X years plans you of your that unwound if our

environment there we're be referring would I very all sustainable of in. is Volume uplift. variety we're what in up we're capital that you confident in adding we're So well. continue business, geographies anticipate the sustainable in that confident if But to is doing think to. what and the volumes that nice obviously doing the that were even we're we move wouldn't And doing as we a things do

Operator

Mr. registered. this time, at And have other we no questions Hendriksen, sir. proceed, Please

Roger Hendriksen

chance soon. there to other further your all appreciate Okay. forward get Cooper-Standard. continuing If the didn't to can interest out to good discussion. please we Thanks, free Look feel to speaking questions, everybody. were reach our in the This ask, appreciate me outstanding We you concludes to directly arrange a call. engagement, you Thank you. that questions and and

Operator

for gentlemen, your weekend. does ask for and Ladies we this this sir. Once indeed attending. you, Have time, thank lines. good conference a today. please conclude Thank you At your again, call that disconnect you

Cooper-Standard (CPS) 1 Nov 242024 Q3 Earnings call transcript