Findlay, Ohio – Cooper Tire & Rubber Co. suffered a 46.6% drop in fiscal 2018 operating income on 1.6% lower sales, the company announced 19 Feb.
Operating income fell to $165.2 million (€145 million) on sales of $2.81 billion, cutting the operating ratio five full points to 5.9%.
The drop in operating income included a $34 million goodwill impairment charge associated with the company's proposed joint-venture truck-and- bus tire plant in Vietnam.
Cooper said the capacity created by the planned facility would reduce expected production requirements for Cooper's Qingdao Ge Rui Da Rubber Co. Ltd. joint venture in China, resulting in the goodwill impairment charge.
Net income fell 19.7% to $76.6 million.
Cooper management is forecasting “modest” unit volume growth in 2019.
In the first quarter, however, the company expects a lower operating margin due to "typical seasonality".
Also impacting the first quarter results will be a $10- to 15-million restructuring charges related to ceasing light vehicle production in the UK.