Components Business Boosts Cooper 3Q Results
Diversification Helps Cooper 3Q Results Cooper Tire & Rubber has published its third quarter figures. Turnover rose 6 per cent to $839 million (3Q 2001: $791 m), while net income was up 28 per cent at $23 million, compared to last year’s 3Q loss of $20 million, due largely to charges relating to settlement of class action litigation. Excluding class action charges, 3Q 2001 net income was $18 million.
Operating profit for 3Q this year was $55 million ($52 million). Turnover for the first nine months totalled $2.5 billion and net income was up 87 per cent at $88 million ($47 million).
Operating profit was $195 million ($137 million). Thomas A. Dattilo, Cooper’s chairman, president and CEO, commented on the results, saying that the company’s automotive components business “is really beginning to come together”, while describing the tyre industry business as “facing tougher conditions, from both a manufacturing and marketing perspective.
” He went on: “Manufacturing costs, including raw materials, have been increasing steadily, while product demand for the industry overall is down.” He said that Cooper’s unit sales performance continues to outpace the industry, having declined by one per cent during 3Q, against a tyre industry decline of 8 per cent. Tyre sales in 3Q were virtually unchanged at $464 million ($462 m) and operating profit was $27 million, compared to a 3Q 2001 loss of $9 million.
Automotive sales were up 14 per cent at $381 million, generating an operating profit of $27 million, compared to a break-even figure last year. Said Dattilo: “We are clearly a stronger company today because of the expansion of our automotive business. We are more diversified and better able to sustain growth during seasonal or cyclical slowdowns in one business or the other.
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