Cooper posts net income for quarter and year
Cooper Tire & Rubber Co. posted net income of $39 million on net sales of $733 million for the quarter ended Dec. 31, 2009. That compares to a net loss of $143.4 million on sales of $636 million for the fourth quarter of 2008.
The company also recorded an operating profit of $60 million, a $224 million improvement from a loss of $164 million in 4Q 2008. These results included income of $6 million from discontinued operations.
The comparatively stronger results for the quarter were driven by lower raw material costs, improved volumes and increased utilization of manufacturing capacity, according to the company. They were partially offset by "unfavorable price and mix."
CEO Roy Armes says stronger demand for Cooper's tires during the quarter was encouraging.
"This improvement allowed the progress we have made to be more visible on the bottom line. In recent years, we have focused on strengthening the foundation of our company in order to leverage opportunities as they emerge and better face challenges as they arise. We are staying the course with our strategic direction of improving our global cost structure, profitably increasing the top line, and enhancing organizational capabilities."
For fiscal 2009, Cooper posted net income of $52 million on net sales of $2.8 billion. That compares to a net loss of $219.4 million on sales of $2.9 billion the previous year.
Cooper's North American Tire Operations generated a 10.7% increase in sales for the quarter (to $565.6 million), and a 6.3% decrease in sales for the year (to $2 billion). Operating profit was $39 million for the quarter and $111 million for the year.
“The tire industry and the global environment continue to be fluid," says Armes. "Successful implementation of the three imperatives detailed in our 'strategic plan' and improvement in market or industry conditions can drive improved operating results.
"We recognize these results may also be subjected to uncontrollable factors that impact the replacement tire industry. Our focus remains on prudent management of our critical resources to drive shareholder value.
"With recent trends in mind, our outlook remains cautiously optimistic," he adds.