Cooper returns to growth in Q2

After a first quarter punctuated by lower year-on-year net sales and income, Cooper Tire & Rubber achieved growth – albeit slight – in the second quarter. During the three-month period ending 30 June, the tyre maker’s year-on-year net sales increased 0.5 per cent to US$888.7 million. Operating profit rose 10.7 per cent to $76.6 million, with operating margin reaching 8.6 per cent (7.6 per cent in Q2, 2013). Cooper says the increased in operating profit resulted primarily from favourable raw material costs of $67 million, higher unit volume of $13 million, favorable selling, general and administrative costs of $10 million, and manufacturing cost efficiencies of $7 million, which more than offset unfavorable pricing and mix of $85 million. The 2013 operating profit included $7 million in costs related to the then-pending merger with Apollo Tyres, which subsequently did not occur.

Net income attributable to Cooper Tire & Rubber Company in the second quarter came to $38 million, or $0.59 per share, compared with $35 million, or $0.55 per share, a year earlier.

”We continued our strong performance in what is usually a seasonally weak quarter, posting very good volume growth in most geographic regions,” said Roy Armes, Cooper’s chairman, chief executive officer and president. “Pricing decreased, mainly driven by lower raw material costs, but the ten per cent global unit growth, along with our focus on cost reductions, helped us exceed last year’s operating margin.”

Further financial details for Cooper Tire can be found here.

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