Cooper Tire: 2013 figures show impact of ‘unique challenges’
Less than two weeks after releasing overdue third quarter 2013 results that reflected the disruptions experienced at Cooper Chengshan in China – a situation that cost the company US$56 million in negative impact, including $47 million in lower volumes and $9 million in manufacturing inefficiencies – Cooper Tire & Rubber has published its fourth quarter and full year 2013 figures. Sales, operating profit and net profit are all lower than in 2012.
For the year ended 31 December 2013, Cooper Tire & Rubber reported net sales of $3.4 billion, an 18.1 per cent decrease compared with the previous year. Operating profit for the full year 2013 was $241 million, 39.3 per cent lower than the 2012 figure of $397 million. Operating profit margin sank from 9.4 per cent to 7.0 per cent. The company reported net income of $1.73 per share on a diluted basis for the full year, less than half the $3.49 reported for 2012.
North America Tire Operations reported net sales of $2.5 billion, $0.6 billion lower than the prior year. Operating profit was $204 million for the year, compared with $296 million in 2012. Cooper’s International Tire Operations reported net sales of $1.2 billion, a decrease of $0.3 billion from the prior year. Operating profit was $84 million for the year compared with $144 million in 2012.
Focusing on the positive aspects of Cooper’s 2013 experience, company chairman, chief executive officer and president Roy Armes stated: “Delivering operating profit of $241 million in 2013 and exiting the year with a strong balance sheet is a testament to the dedication and commitment of Cooper people worldwide and to the resilience of our business model. These results were achieved despite several unique challenges in 2013, the impact of which will diminish as we move forward in 2014. I am proud of our organisation and confident in our strategic plan, which we believe will produce results that create value for our shareholders over the long term.”
Fourth quarter net sales were $861 million, a decrease of $201 million, or 19.0 per cent, compared with the same period a year ago. Operating profit for the fourth quarter was $47 million, down 62.1 per cent from the fourth quarter of 2012. Operating profit margin was 5.5 per cent, as opposed to 11.7 per cent a year earlier. The company reported net income attributable to Cooper Tire & Rubber Company of $0.31 per share, or $20 million, in the fourth quarter. This compares with $73 million, or $1.15 per share, for the same period in 2012.