FINDLAY, Ohio — Cooper Tire & Rubber Co. (CTB) has reported net income of $39 million for the quarter ended Dec. 31, 2009, a $183 million improvement from the same period in 2008. Net sales were $773 million, an increase of $137 million, or 22 percent, from the prior year. Operating profit was $60 million for the quarter, a $224 million improvement from a loss of $164 million in 2008. The company reported net income of 63 cents per share during the quarter on a diluted basis. These results included income of $6 million from discontinued operations during the quarter.
Results during the quarter included restructuring charges of $12 million, primarily related to the closure of the Albany, Ga., facility, a decrease of $64 million from the fourth quarter of 2008. During the prior year same quarter, the company also had a $31 million non-recurring pretax charge for impairment of goodwill in the International segment. Excluding these charges, operating profit in the fourth quarter of 2009 improved by $129 million from the same quarter in 2008.
The company said stronger results for the quarter when compared to the prior year were driven by lower raw material costs, improved volumes and increased utilization of manufacturing capacity. These positive impacts were partially offset by unfavorable price and mix.
For the year 2009, Cooper generated net sales of $2.8 billion, down 4 percent from 2008. Net income was $52 million for the year – a significant improvement from a net loss of $219 million in 2008. The company ended the year with $427 million in cash and cash equivalents, reflecting strong cash flows from operations and prudently managed resources. A payment of $97 million was made to retire maturing parent company debt during the fourth quarter of 2009.
CEO Roy Armes commented, "During the fourth quarter, we were encouraged by the stronger demand in many markets for our tires. This improvement allowed the progress we have made to be more visible on the bottom line. In recent years, we have focused on strengthening the foundation of our company in order to leverage opportunities as they emerge and better face challenges as they arise. We are staying the course with our strategic direction of improving our global cost structure, profitably increasing the top line, and enhancing organizational capabilities.
"The tire industry and the global environment continue to be fluid. Successful implementation of the three imperatives detailed in our Strategic Plan and improvement in market or industry conditions can drive improved operating results. We recognize these results may also be subjected to uncontrollable factors that impact the replacement tire industry. Our focus remains on prudent management of our critical resources to drive shareholder value. With recent trends in mind, our outlook remains cautiously optimistic. The successes we achieve, combined with improved global industry conditions, can result in an even stronger company with a more consistent level of profitability."
