Commercial Business Consumer Tires Retail Suppliers Wholesale Distribution

In the U.S., Cooper exceeds industry output

Order Reprints

Financially, Cooper Tire & Rubber Co. fared well in the third quarter of 2014. Compared to 3Q 2013, the company improved its net loss to a net gain.

But how did the company fare in the United States?

Cooper's total light vehicle tire shipments in the U.S. increased 11% during the quarter, according to the company. The Rubber Manufacturers Association (RMA) member shipments were up approximately 0.3%; total industry shipments -- which includes an estimate for non-RMA members -- increased 3%.

Third-quarter net sales for the Americas Tire Operations segment as a whole rose 10%, from $633 million in 3Q 2013 to $694 million. Unit shipments increased 11%; last year’s third quarter included $29 million of lower unit volume associated with the Cooper Chengshan (Shandong) Tire Co. Ltd. (CCT) labor issues.

The quarter's unit volume increase was driven primarily by sales of

* new, higher margin passenger and light truck products introduced in the last year, and

* truck and bus radial tires.

The segment's operating profit for the third quarter was $76 million, or 10.9% of net sales. That compares to $39 million, or 6.1% of net sales, for the same period last year. The higher operating profit primarily reflected favorable raw material costs of $55 million, higher unit volume of $14 million and favorable products liability costs of $5 million.

These benefits more than offset unfavorable price and mix of $27 million, as well as higher selling, general and administrative costs of $6 million, partially reflective of increased investment in brand awareness. (The 2013 quarter included $6 million from lower volume related to the CCT labor issues.)

For the nine-month period, net income increased 43.6%, from $91.4 million to $131.3 million, and net sales increased 2%, from more than $1.8 billion to $1.9 billion. Operating profit increased 27.4%, from $169 million to $209 million.

Cooper posted net income of $47.7 million on net sales of $920.1 million for the third quarter ended Sept. 30, 2014. For more on the company-wide financial results, and to read what Chairman, CEO and President Roy Armes had to say about them, click here.

Related Articles

‘We’re in the Long Game:’ Tire Dealer of the Year Chip Wood Leads Tire Discounters Into the Future

Nama Website Designed for U.S. Market

Goodyear Enters the Brake Market

You must login or register in order to post a comment.