Cooper posts record results
Cooper Tire & Rubber Company has reported its fourth quarter and full year 2012 results, including record net sales of US$1.1 billion in the final quarter, and increase of two per cent on the same period a year earlier. Operating profit also reached record levels in the fourth quarter, amounting to $124 million – $65 million higher than fourth quarter 2011 and 11.7 per cent of net sales. The company reported net income attributable to Cooper Tire & Rubber Company of $1.15 per share, or $73 million in the fourth quarter.
“A strong fourth quarter capped off a great year,” said Cooper Tire & Rubber CEO Roy Armes. “Cooper Tire closed 2012 with record fourth quarter and full-year net sales and operating profit. Despite challenging global economic and industry conditions, our employees around the world continued to execute our strategic initiatives including diversifying our channel and product mix for light vehicle tyres as well as expanding volumes in the truck-bus radial tyre segment. Due in large part to successful product launches and demand for our products, the company has increased unit volumes and outpaced the industry in our key markets for the full year. Among other achievements in our international segment during 2012, we completed the purchase of tyre manufacturing assets in Serbia, a facility that has already produced its one millionth tyre and was responsible for driving volume growth for the total international segment in the fourth quarter.”
Fourth quarter profits benefitted from lower raw material costs of $101 million, manufacturing efficiencies of $9 million, volume increases totalling $5 million and $2 million in lower product liability costs. These profit contributors were partially offset by $25 million in unfavourable price and mix, and $20 million in higher selling, general and administrative costs as the company continued to invest in expanding distribution networks and promoting Cooper brands.
For the year ended 31 December 2012, the company reported record net sales of $4.2 billion, an increase of $293 million, or seven per cent, from 2011. Operating profit for the full year 2012 was also a record at $397 million, which is 9.5 per cent of net sales. The company reported net income of $3.49 per share from continuing operations on a diluted basis for the full year.