FINDLAY, Ohio — Cooper Tire & Rubber Co. has reported net income of $12 million for the quarter ended March 31, a $33 million improvement from the same period in 2009. Net sales were $754 million, a substantial increase of $183 million, or 32 percent, from the prior year. Operating profit was $33 million for the quarter, a $49 million improvement compared with a loss of $16 million in 2009. The company reported net income of 19 cents per share during the quarter on a diluted basis.
Results during the quarter included restructuring charges of $8 million, related to the closure of the Albany, Ga., facility, a decrease of $7 million from the first quarter of 2009.
Cooper said stronger results for the quarter when compared to the prior year were driven by improved volumes and increased utilization of manufacturing capacity, the company said. Partially offsetting the positives were a negative net price and mix to raw materials relationship and higher products liability charges.
North American Tire Operations sales were $532 million during the first quarter, up significantly from 2009 net sales of $439 million. Total light vehicle tire shipments for Cooper’s North America segment in the United States increased by 19 percent, outpacing the total industry shipment increase of 13 percent reported by the Rubber Manufacturers Association. This improvement occurred across nearly all product segments as the company was able to increase market share.
Cooper CEO Roy Armes commented, "We were extremely pleased with the improved volumes and manufacturing performance achieved during the first quarter of 2010. The increases in volume were the result of better industry conditions combined with successfully positioning the company for growth. The momentum also continued in our operations where our efforts to be more cost competitive were again visible on the bottom line. While our outlook remains cautiously optimistic, we recognize that raw material costs continue to be volatile and have a significant impact on our results. We expect that raw materials will continue to increase and remain elevated in the near future. As a result, we announced a price increase in North America on light vehicle tires of up to 7.5 percent, effective June 1. I am very proud of the efforts and accomplishments of the Cooper team during this period. Our focus remains on prudent management of our critical resources to drive shareholder value. "
