Cooper-Standard Holdings Inc. has reported results for the second quarter 2021.
Second Quarter 2021 Summary
• Sales totaled $533.2 million, reflecting a negative impact of approximately $200 million from semiconductor-related customer shutdowns
• Net loss amounted to $63.6 million or $(3.73) per diluted share
• Adjusted EBITDA totaled $(14.7) million, including the negative impact of semiconductor-related customer shutdowns
• Net new business awards totaled $91.8 million, including $28.0 million in new business awards on electric vehicle platforms
“Our operating teams continue to perform well, delivering world-class products, technology and service to our customers around the world,” said Jeffrey Edwards, chairman and CEO, Cooper Standard. “However, volatile customer production schedules and rising material costs significantly impacted our operating efficiency and results during the quarter. We are taking aggressive actions, including commercial negotiations with customers and suppliers, to mitigate these incremental costs. Based on current customer schedules, we expect to leverage higher production volumes to drive improved financial results in the second half of the year.”
The year-over-year change in second quarter sales was primarily attributable to the non-recurrence of COVID-related customer shutdowns and favorable foreign exchange, partially offset by semiconductor-related customer shutdowns and the divestiture of certain businesses in India and Europe in July 2020. Organic sales growth, which excludes the impacts of foreign exchange and divestitures, was 54.9 percent year-over-year.
Net loss for the second quarter 2021 included restructuring charges of $11.6 million and other special items. Net loss for the second quarter 2020 included asset impairment charges of $12.6 million, restructuring charges of $9.8 million and other special items.
In the first six months of the year, the year-over-year change in sales was primarily attributable to the non-recurrence of COVID-related customer shutdowns and favorable foreign exchange, partially offset by semiconductor-related customer shutdowns and the divestiture of certain businesses in India and Europe in July 2020. For the first half of the year, organic sales growth, which excludes the impacts of foreign exchange and divestitures, was 22.8 percent versus the same period in 2020.
Net loss for the first six months of 2021 included restructuring charges of $32.7 million and other special items. Net loss for the first six months of 2020 included asset impairment charges of $87.3 million, restructuring charges of $17.1 million and other special items.
New Business Awards
The company said it continues to leverage its world-class engineering and manufacturing capabilities, its innovation programs and its reputation for quality and service to win new business awards with its customers. During the second quarter of 2021, the company received net new business awards representing an incremental $91.8 million in anticipated future annualized sales. Importantly, these net new business awards included $28.0 million in new awards on electric vehicle platforms. For the first six months of 2021, the company’s net new business awards totaled $131.3 million, with $58.8 million in new awards on electric vehicle platforms.
New business awards related to the company’s innovation products were strong in the second quarter, with new contract awards, including both new and converted replacement business, totaling $93.8 million in anticipated future annualized sales. These awards are related to the company’s commercialized innovation products such as MagAlloy, Gen III Posi-Lock, Easy-Lock, PC2000, EPDM Microdense and TP Microdense. Additionally, the company has introduced new technologies through our i3 Innovation Process that are supporting future pursuits with Fortrex, FlushSeal, TUROS and next-generation connection technologies.
