Cooper Tire earnings down 42% at Q3

Findlay, Ohio – Cooper Tire & Rubber Co. showed similar results in net sales to last year's totals, but net income fell for the third quarter of 2018.

Sales increased by 0.5% to $738 million (€645 million) for the three-month period compared to the same last year, according to a Cooper news release. Year-to-date, net sales decreased by 3% to $2.03 billion.

Net sales were favourably impacted by $5 million of positive price and mix, partially offset by $1 million of unfavourable foreign currency impact, Cooper said.

Cooper Tire's net income fell by 12% to $55.4 million during the third quarter. The total for the year so far fell 42% to $80.1 million.

By segment, Americas Tire returned an increase to net sales of 0.5% to $629 million. Since January, net sales declined by 4% to $1.7 billion.

Those numbers are a result of $8 million of favourable price and mix, partially offset by $2 million of lower unit volume and $2 million of unfavourable foreign currency impact, Cooper said. Segment unit volume decreased 0.3% from the previous year, with a unit volume increase in North America offset by a decrease in Latin America because of continued regional economic and political challenges.

Cooper said its third quarter total light vehicle tire shipments in the US increased 1.5%.

International Tire operations showed a decrease of 0.6% to $162 million for the three-month period. Year-to-date, the segment's net sales increased 8% to $491 million.

The period decrease was a result of $7 million of lower unit volume, partially offset by $5 million of favourable price and mix and $1 million of favourable foreign currency impact. Segment unit volume decreased 4.1% from the prior year, driven by a decrease in unit volume in Asia and Europe. In Asia, original equipment volume was up year-over-year but was more than offset by softness in the replacement market because of credit tightening. In Europe, an increase in third party sales was more than offset by lower shipments to the US.

Cooper recently decided to enter an employee consultation period to explore ceasing light vehicle tire production at its facility in Melksham, UK.