Cooper announces tire price increase
Cooper Tire & Rubber Co. will raise prices on its consumer tires up to 5% on October 1.
"We believe further price increases will be necessary for us to offset rising raw material costs," said Cooper Chairman, CEO and President Tom Dattilo.
Cooper´s last price increase went into effect June 1, when it raised prices on all its major, associate and private brand consumer tires up to 5%. At the time, a company spokesperson said rising raw material costs necessitated the increases.
Cooper credited its most recent price increase for helping it post strong second-quarter 2004 financial results. The company´s sales for the second quarter totaled $992 million, an 18% increase from the same period last year and a new record for the company. Net sales for Cooper´s tire operations totaled $515 million, also a new Q2 record.
Cooper also achieved second quarter net income of $33 million, a 163% jump from Q2 2003.
"...tire price increases implemented during the first half of the year served to partially offset the negative impact of rising raw material costs," said the company.
Cooper Tire´s stock price on the New York Stock Exchange closed at $22.70 on Tuesday. That compares to a 52-week high and low of $23.60 and $15.77, respectively.