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

Despite Lackluster Results, Dealers Still Speculate Volumes Will Increase Going Forward

According to the results of our survey, demand for passenger and light truck replacement tires declined again in April. Indeed, from a volume standpoint, the dealers reported they sold 0.9% fewer tires in April relative to the previous year’s period. The soft results marked the fourth straight month of lackluster results, including three consecutive months of negative volumes. The weak results come despite weather patterns and the disbursement of tax refunds normalizing.

The tall ceilings of Jeff Hall's Gardiners Road store give it a modern look and feel.
News

The Secret to Success for Midas in Canada: Tires

The owner of the two busiest Midas locations in Canada says offering an extensive tire inventory and more than a dozen tire brands has transformed his business. Consider Jeff Hall’s success a sign of what’s to come at Midas stores across North America.  

News

Six Hankook Tire Dealers Will Host Events for Veterans

Six tire dealers will help Hankook Tire America Corp. continue its partnership with the Disabled American Veterans (DAV) organization. Those dealers will host the group's Mobile Service Offices (MSO) at their stores so the DAV can reach out to veterans in those communities.  

Joe Venezia will lead Bridgestone's retail efforts at its 2,200-plus company-owned stores.
News

Bridgestone Retail Stores Have a New Leader

The 2,200-plus retail stores owned and operated by Bridgestone Americas Inc. have a new leader. Joe Venezia is the president of Bridgestone Retail Operations LLC (BSRO) effective June 19, 2017.  

News

Giti's Made-in-USA Tires Earn Fitment on Volkswagen Passat

Two sizes of the All Season Giti ComfortA1 tire will be featured as original equipment tires on the 2019 Volkswagen Passat. Giti Tire (USA) Ltd. says the tires represent the first OE fitment that will be manufactured at the company's U.S. tire plant.

News

Texas Governor Vetoes Used Tire Bill

Texas Gov. Greg Abbott has vetoed a bill that would prohibit the sale of unsafe used tires. "Texas does not need to impose new criminal penalties on people who put tires on cars.

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!