FINDLAY, Ohio (Nov. 5, 2012)—Cooper Tire & Rubber Co. reported record sales and earnings for quarter and nine months ended Sept. 30.
The tire maker said net income quadrupled to $74.1 million in the quarter, as operating earnings jumped 174.6 percent to $130 million. Sales rose 4 percent to $1.1 billion.
Cooper said third quarter profits were impacted positively by lower raw material costs of $144 million, volume increases totaling $9 million and $7 million in manufacturing efficiencies.
However, profit contributors were partially offset by $36 million in unfavorable price and mix and $28 million in higher selling, general and administrative costs to invest in the company's expanding distribution networks and promoting the company's brands, according to Cooper.
The company also saw $7 million in higher product liability costs and $7 million in “other” costs —which included higher pension expenses. Higher incentive compensation costs, resulting from higher profits, affected selling, general and administrative costs and other costs, the firm said.