FINDLAY, Ohio—Cooper Tire & Rubber Co. experienced increased net income for the full year and fourth quarter of 2014 after unusual circumstances impacted its 2013 financials.
The tire maker reported net income at $214 million, up from $111 million in 2014 for the year. Those results included a gain of $56 million from the sale of the firm's 65 percent stake in its Chinese joint venture, Cooper Chengshan Tire Co. Ltd.
For the fourth quarter, net income increased to $82 million compared to $20 million in 2013. Net sales, however, decreased 5 percent to $820 million from $861 million in 2013. The firm attributed the decrease to lower volume of about $61 million related to the absence of CCT for part of the quarter.
Net sales for the full year decreased slightly to $3.42 billion compared to $3.44 billion in 2013.
Cooper Tire cautioned that its 2013 results are not representative of the business under normal circumstances. In 2013, labor actions at its CCT joint venture resulted in lower production and shipments, higher costs and lower volume associated with shipping inefficiencies related to ERP system implementations. That, the tire maker said, as well as costs related to its now terminated merger agreement with Apollo Tyres Ltd., had a negative impact on its financials.
The firm sold its 65 percent stake in CCT in November 2014 for about $262 million, which was not included in its fourth quarter results.
“Despite the relative weakness in our international operations in the fourth quarter, we had a very good year in 2014, particularly in our Americas business,” Roy Armes, chairman, CEO and president of Cooper Tire, said in a Feb. 23 conference call discussing the firm's results.
Armes added that the firm expects tire markets to continue to grow modestly in North America during 2015. Sales for the firm's Americas Tire Operations segment increased 10 percent to $689 million from $628 million in the fourth quarter. Unit shipments increased 8 percent compared to 2013.