Cooper's 2Q: something to write home about
Cooper Tire & Rubber Co. posted net income of nearly $52 million on net sales of $1 billion for its second quarter ended June 30, 2012. That compares to income of $11.5 million on sales of $918.7 million for the same period last year.
Operating income also was up, from $24.2 million to $95.4 million. The company's income-to-sales ratio was 4.9%.
Results during the quarter included a pre-tax gain of $7 million related to the curtailment of a pension plan at the company's United Kingdom operations.
The 349% increase in net profit and 293% increase in operating profit were aided by the following:
* lower raw material costs;
* higher sales volumes in both the North American and International segments;
* improved manufacturing efficiencies; and
* lower product liability costs.
As a result of the company’s improved operating profit performance, selling, general and administrative and other costs also included higher incentive compensation-related expenses.
Net sales in North America were $771 million during the second quarter, up 16.2% from 2Q 2011 sales. Cooper says the increased sales were the result of "higher unit volumes and stronger price and mix."
According to Cooper, unit sales for the North American segment increased 15%, while total light vehicle tire shipments in the United States increased 16%.
The segment's operating profit was $65 million for the second quarter, or 8.4% of net sales.
For the first six months of the year, Cooper recorded net income of $73.3 million on net sales of $2 billion. That compares to income of $27.2 million on sales of $1.8 billion for the first half of 2011.
To read about Cooper's first-quarter results, click here.