Cooper-Standard Holdings Inc. (NYSE:CPS) Q4 2022 Earnings Call Transcript

Patrick Sheffield: Okay. And it’s hard to probably quantify the stuff, but how much of that number is already kind of locked in? Or how much was at play in 2023 versus had already been agreed to in ’22? And just broadly, is this something that every year you have you are going to do negotiations with your customers? Or is this just trying to — just like the final strokes of your broader effort to get greater indexing across your entire — across your commodity cost structure?

Jeffrey Edwards: Patrick, this is Jeff. I’ll try to answer all of that here succinctly. So point one, we’ll — we are in negotiations virtually with every customer in the world. Per my prepared remarks, we are confident that those are going well. I think we’re very transparent with them, and we’ve been going through those discussions really since probably November. So we got an early start. And we expect that the outcome is going to be positive for us. And we believe that the relationships that we have today will continue to be preserved going forward. That’s our expectation. Related to how we’ll quantify that, we’ll just wait until the closing in the quarter, and then we’ll give you a summary on that when we report out our first quarter results. I think it’s the best way to deal with it.

Patrick Sheffield: This is something you do every year or — it seemed like there’s a big change last year and the year before to try and change the later contracts work? And is this more like just an annual discussion that you have? Or is it a continuation of the efforts from the last couple of years?

Jeffrey Edwards: It certainly seems like it’s an annual discussion, I agree. But the intent this year is in the discussions that we’re having right now, we intend to create sustainable businesses in each region. And where we do, we’ll stay. Where we don’t, we will leave.

Operator: It appears that there are no more questions. I would now like to turn the call back over to Roger Hendriksen.

Roger Hendriksen: Okay. Thanks, everybody, for joining our call today. We appreciate your continued interest. If you didn’t get a chance to ask your questions this morning, please reach out to me, and we’ll be in touch. Happy to engage in whatever questions or comments you’d like to share down the road. Thanks again for participating. This concludes our call.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.