FINDLAY, Ohio (Aug. 3) — Looking forward to the second half of the year, Cooper Tire & Rubber Co. expects replacement tire demand to improve "somewhat" though raw material prices will continue to escalate.
In its second quarter earnings report, Cooper said it expects commodity price increases in the third quarter of 5-7 percent, which would amount to a 17- to 20-percent gain on a year-over-year comparison.
Cooper last instituted a price increase of up to 7 percent on all product lines in North America effective July 1. The tire maker posted a net loss in the second quarter of $20.7 million on sales of $624.8 million.
"While we are not satisfied with the results of this quarter, we are confident that our fundamental strategy is correct," interim CEO Byron Pond said in a statement. "We are putting more effort into cost reduction and other margin improvement initiatives and are confident they will improve performance.
"Our gains in market share, the growth of our high-performance and premium products and improving brand recognition will also help us put profit back on track. All of this, combined with further progress we are making in more efficient manufacturing and low-cost sourcing, will position us well for the future."