Cooper Achieved Income, Operating Profit Gains in 2020
Cooper Tire & Rubber Co., which will be acquired by Goodyear Tire & Rubber Co. later this year, posted full-year 2020 net income of $143 million, up from income of $96 million in 2019.
Cooper's net sales for 2020 totaled $2.5 billion versus $2.75 billion in 2019. For the full-year, Cooper's operating profit totaled $231 million, up from $174 million during 2019.
Cooper President and CEO Brad Hughes says that Cooper "continued to build upon the positive momentum that began in 2019, driven by execution of our strategic initiatives, which have successfully transformed Cooper into a consumer-driven company.
"Despite impacts from coronavirus, we delivered strong operating profit performance for the year and demonstrated that the value proposition of providing high- value tires at an affordable price is compelling for consumers, especially in the current environment."
On Feb. 22, Goodyear announced that it has entered into an agreement with Cooper to acquire the Findlay, Ohio-based company for $2.5 billion. The deal is expected to close during the second half of 2021. (Click here to read MTD's full report.)
During the fourth quarter of 2020, Cooper posted net sales of $728 million versus $750 million during 4Q 2019. The company's fourth quarter 2020 operating profit totaled $60 million "compared with operating profit of $64 million in the fourth quarter of 2019," according to Cooper officials, who add that 4Q 2020 included $22 million of "unfavorable raw material costs, which were offset by $22 million of favorable price and mix."
In its Americas region, Cooper's sales fell 3.9% during the fourth quarter "as a result of $82 million of lower unit volume" and other factors. (Cooper's light vehicle tire shipments during 4Q 2020 declined 10.9%.)
Cooper's fourth quarter 2020 operating profit totaled $72 million versus $84 million recorded during the same period in 2019.