Company: CPS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001320461-25-000087
Chunk: 45

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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24ChangeVolume/Mix*Foreign ExchangeCost (Decreases)/Increases**(Dollar amounts in thousands)Cost of products sold$589,891$614,782$(24,891)$5,545 $(15,153)$(15,283)Gross profit77,17861,64315,535 191 61 15,283 Gross profit percentage of sales11.6 %9.1 %

* Net of customer price adjustments, including recoveries.

** Net of savings from 2024 restructuring initiatives.

Cost of products sold is primarily comprised of materials, labor, manufacturing overhead, freight, depreciation and other direct operating expenses. Among these, materials represent the largest component, accounting for approximately 52% and 50% of total cost of products sold for the three months ended March 31, 2025 and March 31, 2024, respectively. The change in cost of products sold was impacted by manufacturing and purchasing savings through lean initiatives, favorable 

24

foreign exchange and savings from prior year restructuring initiatives, partially offset by higher inflation of labor and overhead, higher volume and mix net of recovery, and tariff expense incurred but not yet recovered.

Gross profit for the three months ended March 31, 2025 increased $15.5 million compared to the three months ended March 31, 2024. The change was driven by manufacturing and purchasing savings through lean initiatives and savings from prior year restructuring initiatives, partially offset by higher inflation of labor and overhead and tariff expense incurred but not yet recovered.

Selling, Administration and Engineering Expenses. Selling, administration and engineering expenses include administrative expenses as well as product engineering and design and development costs. Selling, administration and engineering expenses for the three months ended March 31, 2025 were $51.2 million, or 7.7% of sales, compared to $55.4 million, or 8.2% of sales, for the three months ended March 31, 2024. The decrease as a percentage of sales was primarily due to lower compensation-related costs driven by savings from prior year restructuring initiatives.

Restructuring Charges. Restructuring charges for the three months ended March 31, 2025 increased $1.0 million compared to the three months ended March 31, 2024. The increase was primarily driven by higher restructuring costs related to employee severance and other related exit costs in our Sealing Systems segment.

Other Income (Expense), Net. Other income (expense), net,