NORTHVILLE, Mich., May 6, 2024 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE:CPS) today reported results for the first quarter 2024. First Quarter 2024 Summary Gross profit totaled $61.6 million, an increase of 47.4% compared to first quarter 2023 Operating income of $3.5 million reflected an increase of $17.9 million vs. the first quarter of 2023 Net loss of $31.7 million, or $(1.81) per diluted share, reflected an improvement of $98.7 million vs. the first quarter 2023 Adjusted EBITDA of $29.3 million reflected an increase of $16.9 million vs. the first quarter of 2023 New product-based segmentation and management structure expected to drive further operational improvements, optimize asset and resource allocation and accelerate value creation "Our first quarter operational improvements and margin expansion set a solid foundation for a strong 2024," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "Going forward, through our new product line-based management structure, we expect to aggressively pursue further cost structure optimization, leverage commercial opportunities to accelerate growth and enhance value creation. Successful implementation of these initiatives is expected to drive meaningful additional margin expansion and should represent upside to our original full-year guidance, assuming industry production volumes hold." Consolidated Results Three Months Ended March 31, 2024 2023 (dollar amounts in millions except per share amounts) Sales $                                676.4 $                                682.5 Net loss $                                (31.7) $                              (130.4) Adjusted net loss $                                (30.6) $                                (46.2) Loss per diluted share $                                (1.81) $                                (7.57) Adjusted loss per diluted share $                                (1.75) $                                (2.68) Adjusted EBITDA $                                  29.3 $                                  12.5 The year-over-year change in first quarter sales was primarily attributable to the divestiture of our Technical Rubber business in the third quarter of 2023 and unfavorable foreign exchange. These were partially offset by favorable volume and mix, including sustainable price adjustments. Net loss for the first quarter 2024 was $31.7 million, including restructuring charges of $1.1 million and other special items. Net loss for the first quarter 2023 was $130.4 million, including $81.9 million in charges related to debt refinancing, restructuring charges of $2.4 million and other special items. Excluding these special items, adjusted net loss was $30.6 million in the first quarter 2024 compared to adjusted net loss of $46.2 million in the first quarter of 2023. The year-over-year improvement was primarily due to favorable volume and mix, sustainable price adjustments and savings generated from lean manufacturing and purchasing initiatives. These positive drivers were partially offset by continuing inflationary pressure, including higher labor and energy costs, and unfavorable foreign exchange. Adjusted EBITDA for the first quarter of 2024 was $29.3 million compared to $12.5 million in the first quarter of 2023. The year-over-year improvement was primarily due to favorable volume and mix, sustainable price adjustments, and savings generated from lean manufacturing and purchasing initiatives. These items were partially offset by continuing inflationary pressures, including higher labor and energy costs, and unfavorable foreign exchange. Adjusted net loss, adjusted EBITDA and adjusted loss per diluted share are non-GAAP measures. Reconciliations to the most directly comparable financial measures, calculated and presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), are provided in the attached supplemental schedules. New Business Awards The Company 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 OEM customers and capitalize on positive trends associated with hybrid and battery electric vehicles. During the first quarter of 2024, the Company received net new business awards totaling $66.2 million in anticipated future annualized sales. This included $34.0 million of net new business awards on hybrid vehicle platforms and $19.1 million of net new business awards on battery electric vehicles. Segment Results of Operations As of the beginning of 2024, the Company has realigned its operating management structure on a product line basis rather than the prior geographic region basis. The new structure is expected to optimize asset and resource allocation, enhance operating efficiency and aid in accelerating growth. As a result of the structural change, the Company will now report financial results across two product line segments - Sealing Systems and Fluid Handling Systems. On this basis, the segment results for the first quarter are as follows: Sales Three Months Ended March 31, Variance Due To: 2024 2023 Change Volume / Mix* Foreign Exchange Divestitures (dollar amounts in thousands) Sales to external customers Sealing systems $     351,279 $     348,980 $          2,299 $          2,433 $           (134) $                — Fluid handling systems 305,515 300,598 4,917 5,878 (961) — Corporate, eliminations and other 19,631 32,880 (13,249) (409) — (12,840)  Consolidated $     676,425 $     682,458 $        (6,033) $          7,902 $        (1,095) $      (12,840) * Net of customer price adjustments, including recoveries. Volume and mix was mainly driven by customer price adjustments including recoveries.  The net impact of foreign currency exchange was primarily related to the Chinese Renminbi and Euro. Adjusted EBITDA Three Months Ended March 31, Variance Due To: 2024 2023 Change Volume/Mix* Foreign Exchange Cost Decreases/(Increases)** (dollar amounts in thousands) Segment adjusted EBITDA Sealing systems $       21,371 $       11,716 $         9,655 $         4,508 $       (2,865) $             8,012 Fluid handling systems 10,982 4,203 6,779 9,732 (6,414) 3,461 Corporate, eliminations and other (3,005) (3,462) 457 340 248 (131)  Consolidated $       29,348 $       12,457 $       16,891 $       14,580 $       (9,031) $          11,342 * Net of customer price adjustments, including recoveries. ** Net of divestitures. Volume and mix was mainly driven by customer price adjustments including recoveries. The net impact of foreign currency exchange was primarily related to the Mexican Peso and Polish Zloty. The Cost Decreases / (Increases) category above includes: Commodity cost and inflationary economics; and Manufacturing and purchasing savings through lean initiatives. Cash and Liquidity As of March 31, 2024, Cooper Standard had cash and cash equivalents totaling $114.2 million. Total liquidity, including availability under the Company's amended senior asset-based revolving credit facility, was $281.6 million at the end of the first quarter of 2024. Based on current expectations for light vehicle production and customer demand for our products, the Company believes it has sufficient financial resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future. These financial resources include current cash on hand, continuing access to flexible credit facilities, and expected future positive cash generation. Outlook Industry projections for full-year global light vehicle production in 2024 are similar to levels realized in 2023. In this broad macro industry view, the Company expects to continue leveraging new program launches and enhanced commercial agreements to drive further growth above the market. In addition, the Company expects to continue driving operational efficiency and improvement through additional aggressive lean cost structure initiatives. As these initiatives were not contemplated when the 2024 business plan was developed, we believe successful implementation will drive meaningful additional margin expansion and should represent upside to the Company's original full-year guidance, assuming industry production volumes achieve planned levels. The Company expects to provide a formal update to full-year guidance when it reports second quarter results. Conference Call Details Cooper Standard management will host a conference call and webcast on May 7, 2024 at 9 a.m. ET to discuss its first quarter 2024 results, provide a general business update and respond to investor questions. Investors and other interested parties may listen to the call by accessing the online, real-time webcast athttps://ir.cooperstandard.com/events. To participate by phone, callers in the United States and Canada can dial toll-free at 800-836-8184 (international callers dial 646-357-8785) and ask to be connected to the Cooper Standard conference call. Representatives of the investment community will have the opportunity to ask questions during Q&A. Participants should dial-in at least five minutes prior to the start of the call. A replay of the webcast will be available on the investors' portion of the Cooper Standard website (https://ir.cooperstandard.com) shortly after the live event. About Cooper Standard Cooper Standard, headquartered in Northville, Mich., with locations in 21 countries, is a leading global supplier of sealing and fluid handling systems and components. Utilizing our materials science and manufacturing expertise, we create innovative and sustainable engineered solutions for diverse transportation and industrial markets. Cooper Standard's approximately 23,000 employees are at the heart of our success, continuously improving our business and surrounding communities. Learn more at www.cooperstandard.com or follow us on LinkedIn,