Company: CPS
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001320461-25-000033
Chunk: 70

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 70
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 how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance. As a result, the Company established two reportable segments: Sealing Systems and Fluid Handling Systems. All other business activities are reported in Corporate, eliminations and other. The segment realignment had no impact on the Company’s consolidated financial position, results of operations, or cash flows. All segment information included in this Annual Report on Form 10-K is reflective of this new structure and prior period information has been revised to conform to the Company’s current period presentation.

The Company uses segment adjusted EBITDA as the measure of earnings to assess the performance of each segment and determines the resources to be allocated to the segments. We have defined adjusted EBITDA as net income before interest, taxes, depreciation, amortization, restructuring expense, and special items.

The following tables present sales and segment adjusted EBITDA for each of the reportable segments. 

Year Ended December 31, 2024 Compared with Year Ended December 31, 2023

SalesYear Ended December 31,Variance Due To:20242023ChangeVolume / Mix*Foreign Exchange(Dollar amounts in thousands)Sales to external customersSealing Systems$1,420,034 $1,444,497 $(24,463)$(11,164)$(13,299)Fluid Handling Systems1,236,837 1,264,953 (28,116)(20,773)(7,343)Total for reportable segments$2,656,871 $2,709,450 $(52,579)$(31,937)$(20,642)

*    Net of customer price adjustments, including recoveries and the impact of work stoppages initiated by certain labor unions in North America in 2023.

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Sealing Systems. The sales variance due to volume and mix, including customer price adjustments, was primarily driven by lower customer recoveries. The unfavorable foreign currency exchange impact was driven by a $7.7 million impact of the Brazilian Real, $3.1 million impact of the Chinese Renminbi, $2.1 million impact of the Canadian Dollar, and $0.4 million unfavorable impact of all other currencies.

Fluid Handling Systems. The sales variance due to volume and mix, including customer price adjustments, was primarily driven by lower customer volumes. The unfavorable foreign currency exchange impact was driven by a $3.5 million impact of the Korean Won, $2.8 million impact of the Brazilian