FINDLAY, Ohio (Aug. 8, 2013) — Cooper Tire & Rubber Co. suffered double-digit declines in sales, operating and net profit for the second quarter for the second quarter, but operating profit for the first six months of 2013 was nearly 16 percent higher than the same 2012 period.
Sales for the quarter were approximately $884 million, Cooper said, a decrease of 16.5 percent from 2012. Operating profit fell 27.4 percent to $69 million. Net income attributable to Cooper Tire declined more than 31 percent to $35.5 million, the company said.
Cooper's unit sales declines were precipitous. The firm's passenger tire shipments in the quarter fell 11.3 percent, while overall market shipments were up 3.2 percent.
Cooper's light and medium truck tire shipments were off 21.2 and 28.3 percent, respectively, while market shipments were up in both segments, 2.6 and 4.1 percent.
Cooper explained that the second quarter operating profit comparison was impacted by a number of one-time items unique to that period in both 2012 and 2013.
Last year, operating profit from the quarter included a pre-tax gain of $7 million, which was related to the curtailment of a pension plan within Cooper's United Kingdom operations. This was partially offset by $2 million in start-up costs for the tire maker's manufacturing business in Serbia.
In addition, during the second quarter of 2013, results included $7 million in higher costs related to the company's pending merger with India's Apollo Tyres Ltd., which Cooper said included "increased accruals for stock-based liabilities of $3 million, reflecting the stock price appreciation following the acquisition announcement." These non-recurring items accounted for $12 million of the $26 million year-over-year decline in operating profit for the quarter, Cooper said.