FINDLAY, Ohio—Cooper Tire & Rubber Co. swam against the current last year, reporting 32.8 percent higher operating earnings for the year.
Cooper’s earnings improvement came despite 8.4 percent lower sales. Cooper cited measurable bottom-line increases in raw material purchases and the price/mix component for the overall improvement in operating income. Offsetting these improvements were the negative impacts of lower sales volumes and reduced manufacturing output.
Operating income improved to $230.9 million on sales revenue of $2.52 billion, raising the operating ratio three full points to 9.3 percent. Net income rose to $142.9 million, compared with $98.3 million in 2019.
Global unit volume fell 13 percent versus 2019, Cooper said.
“In 2020, Cooper continued to build upon the positive momentum that began in 2019, driven by execution of our strategic initiatives, which have successfully transformed Cooper into a consumer-driven company,” Cooper President and CEO Brad Hughes said.
“Despite impacts from coronavirus, we delivered strong operating profit performance for the year and demonstrated that the value proposition of providing high-quality tires at an affordable price is compelling for consumers, especially in the current environment.”
Business in the Americas fell 7.8 percent for the year to $2.17 billion, Cooper said, but operating profit jumped 17.8 percent to $280.3 million, or a ratio of 12.9 percent