FINDLAY, Ohio (May 9, 2013) — Cooper Tire & Rubber Co. reported record first quarter operating profit of $96.7 million, despite a 12.5-percent drop in sales to $861.7 million. Net income for the quarter more than doubled to $62.8 million.
"We carried the momentum of record financial results from 2012 into the first quarter of 2013…," said Cooper Chairman, CEO and President Roy Armes, who anticipates a "challenging" second quarter due to continued softness in global tire demand and weakness in the economy.
Cooper said its first quarter operating profit benefited from $90 million in lower raw material costs and $19 million in lower manufacturing costs. The latter reflected labor peace during the 2013 period; in 2012 the company's Findlay plant was hit by a nine-week labor lockout during the quarter.
Significant offsets to profit included $44 million of unfavorable pricing and mix and $15 million in lower volumes, Cooper said.
Cooper's North America Tire Operations more than tripled its segment profit to $71.4 million despite a 13.7- percent slump in sales to $602.3 million.
Cooper said its light vehicle tire shipments in the U.S. fell 14 percent during the quarter compared with the overall market, which dropped about 1 percent.