Findlay, Ohio – Cooper Tire & Rubber Co. reported lower sales and net income for this year’s third quarter.
The Findlay-based tire maker’s sales decreased by 4 percent to $751 million and net income dropped by 7.5 percent to $49 million, the company said in an Oct. 31 news release. Its operating profit decreased 4.8 percent to $78 million, but that includes an $11.5 million non-cash pension settlement charge.
“The Cooper business model remains a solid foundation for growth and continued profitability,” President and CEO Brad Hughes said in a statement. “We continue to successfully shift our mix to higher margin products, including growing the Cooper brand, and we remained focused on improving our cost structure by optimizing our global manufacturing footprint and investing in automation.”
Cooper attributed the decrease in sales to $17 million of unfavorable price and mix, primarily because of net price reductions related to lower raw material costs. The company also cited a $13 million impact because of negative foreign currency exchange rates and $1 million from lower unit volume.
Raw material costs are inclusive of tariffs, including the preliminary truck-bus radial tire duties implemented by the International Trade Commission, Cooper said.
The firm’s Americas Tire Operations segment experienced a 4.2-percent decline in sales to $673 million. Segment unit volume remained relatively flat, decreasing less than a percent compared to 2015. Cooper said an increase in Latin America volume offset the decreased unit volume in North America. Operating profit held flat at $102 million.
Its International Tire Operations segment experienced a 5.1-percent decrease in sales, to $113 million, primarily because of negative foreign currency impact and lower unit volume. Both were partially offset by favourable price and mix.
Segment unit volume decreased 4.7 percent. Cooper said its international business posted an operating profit of $3 million, compared to a loss of $5 million in 2015.