How did CPS manage to reduce selling expenses while increasing gross profit in Q4 2024?

Cooper-Standard Holdings Inc. (CPS) managed to reduce selling expenses while increasing gross profit in Q4 2024 through a combination of cost-saving initiatives and strategic business decisions:

1. Lean Initiatives: CPS has been focusing on lean initiatives and operating efficiency, which have delivered cost savings as planned. These initiatives have likely led to a reduction in selling expenses by streamlining operations and eliminating non-essential costs.
2. Operating Efficiency: The company's intense focus on operating efficiency has helped offset the headwinds from lower production volume and unfavorable foreign exchange. This efficiency has likely resulted in better cost management, leading to a reduction in selling expenses.
3. New Business Awards: CPS has secured significant new business awards, particularly in the battery electric vehicle and hybrid vehicle segments. These new contracts may have come with better pricing and terms, contributing to the increase in gross profit without significantly increasing selling expenses.

In conclusion, CPS's ability to reduce selling expenses and increase gross profit in Q4 2024 can be attributed to its successful implementation of lean initiatives, operating efficiency improvements, and strategic business development. These efforts have likely helped the company navigate challenging market conditions and maintain profitability.