Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 110

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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 was driven by manufacturing and purchasing savings through lean initiatives, savings from prior year restructuring initiatives and favorable foreign exchange, partially offset by unfavorable volume and mix, net of recoveries, and higher inflation of labor and overhead.

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 June 30, 2025 were $51.2 million, or 7.3% of sales, compared to $52.4 million, or 7.4% of sales, for the three months ended June 30, 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 June 30, 2025 decreased $14.9 million compared to the three months ended June 30, 2024. The decrease was primarily driven by a cost optimization restructuring plan that was implemented in the second quarter of 2024, resulting in higher restructuring-related expenses recognized in the prior year. See Note 4. “Restructuring” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for additional information.

Pension Settlement Charge. A one-time, non-cash pension settlement charge of $46.8 million was incurred in the three months ended June 30, 2024 related to the termination of the aforementioned U.S. pension plan. See Note 9. “Pensions and Postretirement Benefits Other Than Pensions” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for additional information.

Other Expense, Net. Other expense, net, for the three months ended June 30, 2025 decreased $1.5 million compared to the three months ended June 30, 2024. The decrease was primarily driven by lower foreign currency losses.

Income Tax Expense. Income tax expense for the three months ended June 30, 2025 was $8.1 million on earnings before income taxes of $6.6 million compared to an income tax expense of $8.1 million on losses before income taxes of $68.1 million for the three months ended June 30, 2024. The effective tax rate for the three months ended June 30, 2025 differed from the effective tax rate for the three months ended June