Jul. 31 at 9:53 PM
$CPS Wow, strong gross margin for
$706M rev which still has to be very low capacity utilization. $.80 of every
$1.00 revenue should fall to GP for the foreseeable future with fixed manufacturing cost absorption on higher volumes. Gross margin going forward should easily exceed historical levels. With a fixed quarterly SG&A of
$50M EPS growth can really take off with any pick up in volume.
$706M revenue is actually low for where quarterly assembly volumes were and indicate the three domestic OEMs are not accelerating production even though they saw the fastest sales volume acceleration this quarter.
$STLA is in hard spot and will have to push volumes which will likely force
$F and
$GM to compete. If/as this happens
$CPS should see volumes grow faster then industry production volumes.
Refi could/should take
$30M-
$40M out of interest costs.
Need to check 10Q for what is going on with AOCI and tax expense this quarter.
