Cooper Posts $6 Million Net Loss During Second Quarter
Cooper Tire & Rubber Co. experienced a net loss of $6 million during the second quarter of 2020 versus net income of $9 million during the same period last year. During 2Q 2020, Cooper’s net sales fell 26.9% to $496 million.
The Findlay, Ohio-based tiremaker generated operating profit of $5 million during the quarter compared to operating profit of $32 million during the second quarter of 2019.
In its second quarter financial report, which was issued on Aug. 3, Cooper said that second quarter sales “were negatively impacted by $187 million of lower unit volume and $7 million of unfavorable foreign currency impact, partially off-set by $11 million of favorable price and mix."
Cooper’s Americas segment reported operating profit of $22 million during 2Q 2020 versus operating profit of $47 million recorded during the same period last year. Operating profit included $41 million of lower unit volume “and $37 million of unfavorable manufacturing," according to Cooper officials.
“As anticipated, the global pandemic significantly impacted our results in the second quarter,” noted Cooper President and CEO Brad Hughes. “However, our performance materially exceeded our expectations, and I want to thank our employees around the globe for stepping up during this challenging and unprecedented time.”
Hughes said that Cooper entered the COVID-19 pandemic “with a strong balance sheet and with momentum building from our strategic initiatives. We took early and decisive actions to help weather the coronavirus storm, and our teams seized opportunities to continue to build our business. As a result of their efforts, and the economic recovery that started to emerge later in the quarter, Cooper was able to generate significant free cash flow for the period and grow market share in the U.S.
“We believe this affirms the strength of the Cooper brand and the value that our products deliver to consumers who are increasingly looking to buy high quality, affordable tires. We are excited that our strategic initiatives are improving our business even in challenging circumstances, and we are optimistic about the future.”
Cooper’s capital expenditures in the second quarter totaled $17 million, compared with $45 million during the same period one year ago. The second quarter of 2020 also witnessed “a reduction in force at Cooper’s corporate headquarters and certain manufacturing plants, as the company positioned its capabilities to best align with future needs. This action resulted in approximately $1 million of restructuring charges in the second quarter of 2020.”