Cooper-Standard Q4 Loss Widens; Stock Plunges

(RTTNews) - Cooper-Standard Holdings Inc. (CPS) reported that its fourth-quarter net loss attributable to the company widened to $67.38 million or $4.00 per share from $24.21 million or $1.36 per share in the prior year.

Net loss for the fourth quarter 2019 included restructuring charges related to plant closures and headcount reductions, impairment charges related to fixed assets, as well as pension settlement charges related to the purchase of a bulk annuity policy designed to de-risk pension obligations in the U.S.

CPS closed Monday regular trading at $19.83, down $0.73 or 3.55 percent. In the after-hours trade, the stock further dropped $2.03 or 10.24 percent.

Adjusted loss per share was $1.32, compared to earnings $1.47 in the prior year.

Sales for the quarter were $726.19 million, down from $870.66 million in the prior year.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.60 per share and revenues of $690.23 million. Analysts' estimates typically exclude special items.

The company plans to close two additional manufacturing facilities in 2020, as part of cost optimization efforts. The restructuring expense related to these additional facility closures is expected to be approximately $15 million. The structural cost savings resulting from these initiatives are expected to drive a cash payback in about two years on an annualized basis.

In addition, the company said it is continuing a strategic review process to consider alternatives for certain unprofitable operations.

For 2020, the company expects sales to be in the range of $2.85 billion - $3.05 billion. Analysts expect revenue of $3.01 billion.