FINDLAY, Ohio—Cooper Tire & Rubber Co. reported lower net income for the fourth quarter and full year as net sales achieved records in both periods.
The tire maker said net income in 2012 fell 6.4 percent to $252.4 million and declined 61.3 percent in the fourth quarter to $83.1 million.
At the same time, sales grew 2.3 percent to a record $1.06 billion in the quarter and improved 7.5 percent to $4.2 billion for the year.
Fourth quarter profits were impacted by $25 million in unfavorable price and mix and $20 million in higher selling, general and administrative costs as Cooper continues to invest in expanding distribution networks and promoting Cooper brands, the company said. Higher incentive compensation costs, resulting from higher profits, also affected selling, general and administrative costs, and other costs.
Operating profit for the year and quarter more than doubled to a record $397 million and $124.2 million respectively.
In its North America Tire Operations, Cooper saw sales improve 5.2 percent, to $810 million, and 9 percent to $3.1 million respectively for the quarter and year.