Cooper-Standard Holdings Inc. (NYSE:CPS) Q3 2023 Earnings Call Transcript

Michael Ward: And just lastly, Chris, welcome to the party. I hope you’re doing well. On Slide 18, I assume that Liveline is yours. Is that part of your responsibilities?

Chris Couch: It’s Cooper-Standard. Correct. Yes, I run it.

Michael Ward: So, could you tell me a little bit how evolved in what it came from? And on the chart, there are these numbers popping up plus 89 plus 78. What do they represent? Are they kind of the scrap reduction? Is that the efficiencies? What are – how does it – how does it start? What are we looking at with this process?

Chris Couch: We created the technology to solve a problem, which is how to use automation intelligently to improve the operating performance of our lines, from a variety of metrics scrap is certainly one, unplanned downtime due to line issues is another. And those are the types of numbers you saw popping up. So, those are – results from different lines across our internal network. We basically completed the low-hanging fruit rollout within Cooper-Standard and now we’re taking this product out to commercialize in the broader markets.

Michael Ward: So that’s the planned uptime, the unplanned up there, you can reduce that and the scrap rates. I got to believe for a lot of those – the materials you’re producing, the scrap rates higher than industry average. So whatever it is 5% to 7%. Are you cutting it in half? Is that what the type of thing we can expect?

Chris Couch: We see reductions typically in half on controllable scrap. That’s correct.

Michael Ward: Thank you very much.

Operator: Thank you. [Operator Instructions] And it appears there are no more questions. I would like to return the floor, back over to Roger Hendriksen.

Roger Hendriksen: Okay. Thanks, everybody. We appreciate you joining the call and your continuing interest in Cooper-Standard. If there are further questions that come up later in the day, feel free to reach out, and we’ll be happy to connect. Thanks again for joining the call. You can now disconnect.

Operator: Thank you.