Cooper Sees Full Year Sales, Profit Improvements
Cooper Tire & Rubber Co. posted 2007 sales of US$2.9 billion, up 13.9 per cent versus 2006, while net income reached $120 million, up from 2006’s loss of $78 million. Cooper’s North American tyre operations contributed $2.2 billion in sales and $119 million in operating profit for the year. Profits for the unit were up $159 million from 2006, Cooper said, including a $26.5 million gain from the sale of its Oliver Rubber Co. business to Michelin North America.
The financial improvements, Cooper said, were due to its focus on cost cutting. Cooper claimed $100 million in cost reduction in 2007, and plans another $70 million in 2008. “We expect our turnaround to continue in 2008,” Cooper Chairman and CEO Roy Armes said. “There are always potential risks in raw materials and the general economy, but we are confident we will execute on the areas within our control. We expect continuing raw material price increases in 2008, and believe our price increases in each region will help to mitigate those effects.” (Tire Review/Akron)