3Q Sales, Profit Gains Drive 'Strong Rebound' for Cooper
"Following a first half that was significantly impacted by the global pandemic, our third quarter performance reflected a strong rebound for Cooper," says Cooper Tire & Rubber Co. President and CEO Brad Hughes.
Cooper's 3Q 2020 net sales, globally, totaled $765 million versus $704 million posted during the same period last year.
The company's third quarter operating profit totaled $172 million, compared with operating profit of $53 million generated during 3Q 2019.
Its 3Q 2020 results were bolstered by $48 million of favorable raw material costs, $35 million of favorable price and mix, $2 million of lower manufacturing costs and $1 million of higher unit volume.
In the Americas, Cooper's third quarter 2020 net sales totaled $660 million, a $58 million increase from 3Q 2019. The company gained $68 million in operating profit 3Q 2020 versus 3Q 2019.
"Cooper's third quarter total light vehicle tire shipments in the U.S. increased 9%," according to Cooper officials.
Looking ahead, Hughes says that Cooper's strategic initiatives "are unlocking the relevance of our brand with our customers and consumers, creating additional growth opportunities. "We are on the right strategic path and our team will continue to drive our initiatives to achieve our long-term goals."
Hughes adds that the Findlay, Ohio-based tiremaker expects "to achieve operating profit margin within our stated mid-term target of 10% to 14% for the second half of 2020, excluding the $49 million benefit from the adjustment of our product liability reserves in the third quarter."
However, he cautions that Cooper's ability to meet global demand for its products during the fourth quarter "will result in modestly lower global unit volume for the second half of 2020 compared to 2019.
"The strength of our third quarter performance and the pandemic-related, temporary plant closures earlier in the year have reduced our inventory levels."
Click here to read a recent MTD interview with Chris Ball, president of Cooper's Americas region.