Cooper Increases Sales, But Posts Loss for Half
(Akron/Tire Review) On the same morning that its chairman, president and CEO resigned, Cooper Tire & Rubber Co. released its first half and second quarter 2006 financial results. For the first half, the company posted sales of $1.2 billion, up 19 per cent over the same period last year. But Cooper posted a net loss of $26 million for the half. Second quarter sales of $625 million were up 22 per cent year-to-year, and were driven largely by Cooper’s business in China, the company said. Cooper acquired Cooper Chengshan (Shandong) Passenger Tire Co. and Cooper Chengshan (Shandong) Tire Co. in February.
The sales increase came despite weak demand in North America and Europe, a condition that has hampered other tiremakers. According to Cooper, RMA figures show the North American passenger tyre market is down 7 per cent versus 2005, and its own sales for the second quarter were down 5 per cent. In total, North American tyre operations posted an operating loss of $30 million in the second quarter and $36 million in the first six months of 2006, against sales of $463 million for the quarter and $890 million for the half.