Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 3

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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. The electric vehicle segment has faced significant challenges in achieving previously forecasted production volumes, particularly in North America.

Raw Materials

Our business is susceptible to inflationary pressures with respect to raw materials. Abrupt changes in the market prices or availability of certain key raw materials may result in operational and profitability challenges for the Company and the industry as a whole. Although global commodity markets and pricing largely stabilized in 2024 and have remained stable through the first nine months of 2025, we continually work with our customers and suppliers to mitigate ongoing inflationary pressures and material-related cost exposures through a combination of expanded index-based agreements and other commercial enhancements.

General Inflation and Recovery Strategy

In response to inflationary cost pressures that we continue to experience, we have implemented aggressive lean and cost optimization initiatives that are helping to offset these cost pressures. In addition, we continue to actively pursue pricing adjustments from our customers to offset higher costs in our current business, where the higher costs are market driven and beyond our immediate control.

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Results of Operations

 Three Months Ended September 30,Nine Months Ended September 30, 20252024Change20252024Change(Dollar amounts in thousands)(Dollar amounts in thousands)Sales$695,502 $685,353 $10,149 $2,068,544 $2,070,140 $(1,596)Cost of products sold608,361 609,041 (680)1,811,174 1,849,245 (38,071)Gross profit87,141 76,312 10,829 257,370 220,895 36,475 Selling, administration & engineering expenses55,396 49,698 5,698 157,797 157,472 325 Amortization of intangibles1,746 1,628 118 5,068 4,894 174 Restructuring charges3,535 1,516 2,019 8,498 20,430 (11,932)Operating income26,464 23,470 2,994 86,007 38,099 47,908 Interest expense, net of interest income(28,614)(29,125)511 (85,945)(87,041)1,096 Equity in earnings of affiliates1,250 1,258 (8)4,734 4,830 (96)Pension settlement credit