FINDLAY, Ohio (April 27, 2011)—Cooper Tire & Rubber Co. suffered a slight drop in operating income for the quarter ended March 31 because of the negative effects of higher raw materials costs, but reported 3-percent higher net income on 20.1-percent higher sales.
Operating profits fell 2.3 percent to $32.1 million, or 3.5 percent of sales, on $164 million in added raw materials outlays, the company said. These higher costs were offset by $128 million in improving price and mix benefits, as well as other gains.
Net income rose to $18.5 million, or 2 percent of sales.
Cooper's North America Tire Operations achieved a 58.3-percent improvement in operating income to $21.5 million on 21.9-percent higher sales of $647.9 million. The earnings increase resulted from improvements in pricing/mix, higher volumes and enhanced manufacturing and lower restructuring and product liability costs, which more than offset $90 million in increased raw materials costs.