Cooper Tire & Rubber Co. posted net income of $19.6 million on net sales of $861 million for its fourth quarter ended Dec. 31, 2013. That compares to income of $73 million on sales of $1 billion for the same period the previous year.
Cooper's income-to-sales ratio was close to 2.3%. The company's operating income was down 62.2%, from $124.2 million to nearly $47 million.
Fourth-quarter profits compared with the prior year included $27 million in "unusual items" related to the negative impacts of labor actions taken at the Cooper Chengshan (Shandong) Tire Co. Ltd. joint venture. This figure included $25 million from lower volumes in the North America and International business segments and $2 million of manufacturing inefficiencies in the International business segment.
Fourth-quarter results also included $9 million of costs resulting from the now terminated merger agreement with Apollo Tyres.
In addition to these unusual items, unfavorable price and mix reduced profits by $68 million, and were only partially offset by $31 million of lower raw material costs.
For its fiscal 2013, Cooper recorded net income of $111 million on net sales of more than $3.4 billion. That compares to income of $220.3 million on sales of $4.2 billion for fiscal 2012.
The full-year income-to-sales ratio was 3.2%. Operating profit for the year was $240.7 million, compared to $397 million in 2012.
“Delivering operating profit of $241 million in 2013 and exiting the year with a strong balance sheet is a testament to the dedication and commitment of Cooper people worldwide and to the resilience of our business model,” says Chairman, CEO and President Roy Armes. “These results were achieved despite several unique challenges in 2013, the impact of which will diminish as we move forward in 2014.
"I am proud of our organization and confident in our strategic plan, which we believe will produce results that create value for our shareholders over the long term.”
For more on Cooper's financial results for fiscal 2013, check out these links:
Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993.