Cooper back in the black in Q2, first half

ERJ staff report (TB)

Findlay, Ohio -- Cooper Tire & Rubber Co. returned to the black in the second quarter and half year ended June 30, aided in part by a one-time benefit related to the final disposition of matters with former subsidiary Cooper Standard Automotive.

Cooper reported net income for the quarter of $44.1 million and $55.7 million for the six months, compared with losses of $13 million and $34.2 million, respectively, a year ago. Sales jumped 27.2 percent in the quarter to $804 million and 29.5 percent in the half to $1.56 billion.

The company attributed the improvements to increased volumes and higher utilisation of manufacturing capacity. These factors were offset to a degree by an unfavorable price/mix to raw materials relationship and the non-recurrence of a benefit recorded during the prior year second quarter for the curtailment of pension-related costs.

Operating profit was $33.7 million for the quarter, an 18.8-percent drop from 2009, but more than doubled to $66.6 million for the six months.

Cooper's North American Tire Operations generated 34.5-percent higher sales of $575 million in the quarter, based on 25-percent higher light vehicle tyre shipments and favorable changes in the price/mix component. Sales for the six months were up 27.7 percent to $1.11 billion.

Operating profit, on the other hand, fell 29.6 percent to $19.7 million on the negative effects of higher raw materials costs. For the six months, the segment's operating profit rose 36.8 percent to $33.3 million.

International sales rose 21.4 percent in the quarter to $312.2 million and 43.1 percent for the half to $605.7 million.

Cooper CEO Roy Armes declined to make a specific forecast for the remainder of fiscal 2010, saying only, “Our focus remains on profitable top line growth, improving our global cost structure and developing organisational capabilities while prudently managing our resources. We are confident about our abilities and have a proven history of successful execution.

“These factors and industry conditions leave us cautiously optimistic toward future results.”

He noted the full effect of the firm's June 1 price increase of up to 7.5 percent will be felt during the third quarter.

From Tire Business (A Crain publication)

Press release from Cooper