Cooper profits down, even after sales increase
A faultering US tyre market contributed to poor second quarter results for Cooper Tire & Rubber Co. The tyre-maker saw second quarter net income of just $12 million, down nearly 38 per cent year-on-year, against sales of $922 million, up 15 per cent from the second quarter of 2010. For the entire first half, Cooper posted sales of $1.83 billion, up from $1.56 billion for the same period last year. Net income, however, came to $32.9 million, down considerably YoY from $67.3 million.
While Cooper’s North America Tire unit had second quarter sales of $667 million, up 16 per cent from 2010 net sales of $575 million, the sales dollar amount was “the result of both stronger price and mix partially offset by decreased unit sales,” the company said.
“The industry is currently being challenged by two forces: the drop in consumer demand and high raw material prices,” said chairman and CEO Roy Armes. “These challenges are not new to the tyre industry and we have historically found ways to successfully address the issues. While these forces may continue to put pressure on the industry in the short term, we are optimistic about our ability to successfully compete.” (Tire Review)
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