Findlay, Ohio, -- Cooper Tire & Rubber has reported a net loss of $7 million or 11 cents per share for the second quarter and a net loss of $2 million or 3 cents per share for the six months ended 30 June, 2005.
The Company said its operations and results for the second quarter and the first half of the year were negatively impacted by the work stoppage in its Texarkana, Arkansas production facility which began in March and continued into April. The work stoppage, which was resolved with the ratification of a 5-year contract on April 10, 2005, had the effect of reducing net income by $9 million or 15 cents per share in the second quarter and $14 million or 22 cents per share in the first half of the
During the quarter the Company repurchased $84 million of its publicly traded debt with maturity in 2009 through a public tender offer. The Company's results reflect the $8 million in debt extinguishment costs incurred with the debt retirement. The results also reflect an income tax benefit of $11 million. Taxes for the quarter were calculated, as accounting rules
require, utilizing anticipated effective tax rates forecasted for the full year.
Net sales for the Company increased to $511 million in the quarter compared to $509 million in the second quarter of 2004. For the first six months of the year, the Company had net sales of $1000 million, or a 4 percent increase compared to $989 million in the first half of 2004.
Commenting on the quarterly results, Cooper chairman, president and chief executive officer Thomas Dattilo said, "We have worked hard to overcome some very difficult operating conditions during the quarter and the first half of the year. We made good progress once the strike was behind us and that progress was clearly evident in June, but it was not enough to offset the broad impact on sales and disruption of our manufacturing operations in the first two months of the quarter."
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Press releasefrom Cooper