FINDLAY, Ohio (Aug. 10, 2012)—Cooper Tire & Rubber Co.'s earnings quadrupled for the quarter ended June 30 as the company outperformed the industry in both revenue and unit sales growth.
Operating and net income for the quarter quadrupled to $95 million and $52 million, respectively, on the positive effects of lower raw materials costs and higher unit and dollar sales volumes, Cooper said.
Sales jumped 15.3 percent to $1.06 billion, the firm's first-ever billion-dollar sales quarter.
Cooper's North America Tire Operations posted operating profit of $65.1 million for quarter, up from $4 million a year ago. Sales rose 16.2 percent to $770.8 million.
Unit sales in North America jumped 15 percent compared with the prior year second quarter, including a 16-percent rise of consumer tires in the U.S. This contrasts with a no-growth period for industrywide shipments, as reported by the Rubber Manufacturers Association.
Operating earnings for the half year grew 159.2 percent to $143.1 million on 12.2-percent better sales of $2.04 billion. Net income nearly tripled to $86.6 million.
Cooper CEO Roy Armes stopped short of making predictions for the second half, but said the firm's progress during the quarter in the midst of a “challenging business environment” demonstrated a strengthening of Cooper's business model.