Cooper Posts Strong First Quarter Results
Cooper Tire & Rubber Co. achieved net income, sales, operating profit and unit volume gains during the first quarter of 2021.
The Findlay, Ohio-based tire manufacturer posted net income of $22 million for the quarter, compared to a net loss of $12 million during the same period last year.
The company achieved sales of $656 million during 1Q 2021, a 23.3% increase from 1Q 2020.
Cooper's operating profit climbed to $38 million versus an operating loss of $6 million during the same period in 2020. And it achieved a year-over-year global unit volume increase of 16.6% during the first quarter of 2021.
In the Americas, Cooper posted first quarter net sales of $562 million, a 23% jump from 1Q 2020 levels, and operating profit of $60 million versus $10 million posted during the first quarter of 2020.
Operating profit gains included "$22 million of higher unit volume, $15 million of favorable price and mix, $4 million lower raw material costs, $2 million of lower product liability expense and $1 million of decreased manufacturing costs compared to the first quarter of 2020," say Cooper officials.
Operating profit during 1Q 2021 "also included $11 million of restructuring changes related to the transition of the company's now wholly owned Mexico manufacturing facility."
Cooper President and CEO Brad Hughes says demand "remained strong for the industry and Cooper in the first quarter. Our unit volume performance in the quarter, while strong, continued to be constrained by supply that fell short of demand, caused in part by severe weather in the southern U.S. that impacted our ability to produce and move products.
"The Cooper value proposition of providing high-quality tires at an affordable price remains compelling for customers," he says. "We continue to leverage our global production footprint and capabilities to meet this continued strong demand."