Retail

Cooper is up across the board in 2Q

Posted on August 7, 2014

Cooper Tire & Rubber Co. posted net income of $38.2 million on net sales of $888.7 million for the second quarter ended June 30, 2014. That compares to income of $35.5 million on sales of $884.1 million for the same period last year.

Operating income increased 10.7%, from $69.1 million to $76.6 million. The increase resulted primarily from favorable raw material costs ($67 million); higher unit volume ($13 million); favorable selling, general and administrative costs ($10 million); and manufacturing cost efficiencies ($7 million), which more than offset unfavorable pricing and mix of $85 million. The 2013 operating profit included $7 million in costs related to the then-pending merger with Apollo Tyres Ltd., which subsequently did not occur.

The company's net income-to-sales ratio was 4.3%.

Cooper's North American operation, which represents 72% of total sales, posted an operating profit of $65 million, up 9.5% over results from 2Q 2013. Sales totaled $639 million, up 2.5%. Unit shipments increased 9%; according to the company, the unit volume increase was driven primarily by sales of new, higher margin light truck and SUV products introduced in the last year.

Cooper's total light vehicle tire shipments in the United States increased 7% during the quarter. In comparison, the Rubber Manufacturers Association (RMA) estimates total industry shipments were up only 3%.

”We continued our strong performance in what is usually a seasonally weak quarter, posting very good volume growth in most geographic regions," says Roy Armes, Cooper’s chairman, CEO and president. "Pricing decreased, mainly driven by lower raw material costs, but the 10% global unit growth, along with our focus on cost reductions, helped us exceed last year’s operating margin."

For the six-month period ended June 30, 2014, Cooper recorded net income of $83.6 million on net sales of nearly $1.7 billion. That compares to income of $91.5 million on sales of more than $1.7 billion for the first half of 2013.

Cooper's 1H operating profit in North America was a record $133 million.

Related Topics: Cooper financials, raw material costs, RMA, Roy Armes

Comments ( 0 )
More Stories
Article

You’ve Got Email: It’s Still the Way to Go to Market, Digitally Speaking

Remember email? Sometimes in the communication that is texting, tweeting or ‘Snapchatting,’ email is taken for granted. Facebook is great for sharing your thoughts and feelings to everyone you have friended, but email is more targeted, especially when used for business. You might say it is even more personal than Facebook because it is designed for interaction between two people or among a small group of people.

Drew Howlett from Falken says developing the right M/T tire is critical. “There are too many other competitive products on the market to have any weaknesses.”
Article

M/T Tires are Having a Moment: Consumer Demand Is Blurring the Lines

Of the 19 tire manufacturers who responded to our questions, 11 have introduced new M/T tires since 2015. And at least three more new M/T tires are expected to be unveiled in the next 24 months. Nick Gutierrez, sales manager for Sentury Tire Americas, refers to it as a “flash flood.”

The sales staff at Ron's Tire & Motorsports is cross-trained to sell every product, from tires to bicycles to lawnmowers to barbecue grills.
News

Ron's Tire Sells Tires, And Much, Much More

Here’s the first hint that the newest tire store Ron Baxter and Ross Baxter are opening in Idaho Falls, Idaho, isn’t a typical retail store: the size. It’s 37,000 square feet.  

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!