Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
February 28, 2011 12:00 AM

Cooper eyes 10 percent unit growth in 2011

ERJ Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    ERJ staff report (TB)

    Findlay, Ohio -- Cooper Tire & Rubber Co. is targeting 10-percent volume growth in 2011 after reporting nearly 21-percent higher sales of $3.36 billion in fiscal 2010 on 8-percent higher unit shipments and improved pricing.

    Cooper reported 20.5-percent higher operating income of $186.3 million, while net earnings surged 171 percent to $140.5 million, thanks in large part to a $56 million surplus from discontinued operations.

    Cooper's North America Tire Operations boosted annual operating profit 17.8 percent to $130.7 million as sales climbed 20.8 percent to $2.42 billion.

    “We were able to deliver positive results during the fourth quarter despite the beginnings of rapid increases in raw material costs, particularly natural rubber,” said CEO Roy Armes. “Demand for our products continued to be very strong and we were able to run the manufacturing facilities efficiently to deliver improved manufacturing results. Our ability to ship more tyres was limited by the inventory we had available for sale during the quarter.”

    For the fourth quarter, Cooper's net income edged up 2.6 percent to $40.2 million as net sales jumped 19 percent to $919.6 million. The quarterly results included restructuring charges of $1 million related primarily to the closure of the Albany, Ga., tyre plant, compared with charges of $12 million during the fourth quarter of 2009.

    Operating profit fell 9.5 percent to $54.6 million for the quarter, largely due to higher raw material prices ($138 million) that were partially offset by better price and mix ($115 million), according to the company. Improved manufacturing ($8 million), increased volumes ($10 million), and lower restructuring costs ($11 million) contributed favorably to the results, Cooper said.

    The North America segment's fourth quarter operating income rose 8.8 percent to $42.4 million on an 18.3-percent jump in net sales to $669.3 million. Cooper attributed the sales increase to stronger price and mix and increased unit sales.

    Cooper reported that favorable pricing and mix of $76 million were more than offset by $86 million of higher raw material costs. Improved manufacturing operations increased results by $9 million. Product liability charges increased $10 million primarily as a result of increased charges on existing reserves.

    Total light vehicle tyre shipments for Cooper's North America segment in the US edged up 0.4 percent, compared with a total industry shipment increase of 7.5 percent as reported by the Rubber Manufacturers Association. Cooper said its ability to meet strong demand for its products was constrained during the fourth quarter by the inventory it had available for sale. However, the tyre maker said the segment gained market share for the full year.

    “In 2011, we intend to produce 10 percent more units than we did in 2010 to help meet this strong demand,” Mr. Armes said, noting a portion of the increase will be used to restock depleted inventories and help imporove fill rates. Cooper is counting on incremental production increases at its plants in the US, China, Mexico and England to meet the expanded goal, he said.

    “The largest challenge facing the company is the increase in natural rubber prices, which increased more than 75 percent during the last four months. Raw material costs have increased between 15 percent and 20 percent sequentially from the fourth quarter of 2010 to the first quarter of 2011.

    “We expect raw material costs to remain at elevated levels after the first quarter; however, the rate of increase should begin to slow during the second quarter,” he added.


    From Tire Business (A Crain publication)

    10k filing from Cooper from US SEC

    RECOMMENDED FOR YOU
    DKT IRC postponed until next year
    DKT IRC postponed until next year
    New CEO for TARRC rubber centre
    New CEO for TARRC rubber centre
    Peltomäki to take over as chief executive of Cimcorp
    Peltomäki to take over as chief executive of Cimcorp
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. All rights reserved.
    Contact Us European Rubber Journal, Crain Communication LTD, Ground Floor 11 Ironmonger Lane, London EC2V 8EY, UK

    Customer Service:
    1-313-446-0450

    Resources
    • About us
    • Contact Us
    • Staff
    • Advertise with Us
    • Media Kit
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac