Cooper Tire and Rubber Company has reported second quarter 2017 net income of $45 million, or diluted earnings per share of $0.85, compared with $71 million, or $1.27 per share, last year. Consolidated unit volume decreased 0.5 per cent compared with a year ago, with strong growth in the International segment that was offset by lower volume in North America. Net sales decreased 2.6 percent to $721 million.
Operating profit was $75 million, or 10.4 percent of net sales, which is a decrease of $35 million from the prior year, reflecting a volatile raw material cost, product pricing, and promotional market
environment. The company’s raw material index increased 20.7 percent from the second quarter of 2016, with raw material costs increasing by $60 million from the prior year.
“Cooper reaffirms our guidance for full year 2017 operating profit margin to be at the high end of our previously projected 8 to 10 percent range. This is based on a better than expected second quarter operating profit margin of 10.4 per cent, and a second half that we believe will also come in at the high end of that range. The tire industry continues to face turbulence in the US market in the form of raw material cost variability, weak trends in retail sell-out of tires to consumers, elevated inventory in the channels and a fluid pricing and promotional landscape. Cooper also achieved strong year-over-year second quarter unit volume increases in Latin America and Asia, as well as in truck and bus radial (TBR) tires,” said President and Chief Executive Officer Brad Hughes.