Findlay, Ohio – Cooper Tire & Rubber Co.'s second quarter results show a sharp divide between the business performance of the company’s America and International tire businesses.
For the group as a whole, operating income fell 61.1% year-on-year to $32.8 million as sales slipped 3.1% to $698.4 million in the three months to 30 June.
Within these figures, the company's Americas Tire operations posted a 55.5% drop in second-quarter, operating profit, to $40.5 million, on sales down 5% to $584.4 million.
Second quarter sales in the Americas segment were impacted by $23 million of lower unit volume, $6 million of unfavourable price and mix and $2 million of unfavourable foreign currency impact.
Segment unit volume decreased 3.7% from the prior year, with unit volume decreases in North America and Latin America.
Cooper said its second-quarter total light vehicle tire shipments in the US fell 3.3%.
By contrast, Cooper's International Tire operations more than doubled its operating profit to $5.65 million as sales jumped 10.9% to $167.8 million for the quarter.
The sales increase was the result of $5 million of favourable price and mix, $1 million of higher unit volume and $11 million of favourable foreign currency impact, the tire maker said.
Segment unit volume increased 0.7% from the prior year, driven by an increase in unit volume in Asia, which was partially offset by a slight unit volume decline in Europe, Cooper said.
Operating profit was driven by $6 million of lower raw material costs, net of price and mix. Manufacturing costs were $4 million unfavourable, while other costs decreased $1 million in the quarter.