Cooper Tire & Rubber Reports Fourth Quarter Results - aftermarketNews

Cooper Tire & Rubber Reports Fourth Quarter Results

Net sales for the period were $636 million, down $130 million from the prior year.

FINDLAY, Ohio — Cooper Tire & Rubber Co. has reported a net loss of $143 million, or $2.43 per share, for the quarter ended Dec. 31, 2008. Net sales for the period were $636 million, down $130 million from the prior year. The decreased revenues were driven by volume declines offset by improved pricing and mix.

Cooper’s results during the quarter included pretax restructuring charges of $76 million related to the impending closure of its facility in Albany, Ga. The company also had a $31 million pretax charge for impairment of goodwill in its international segment. Results were pressured by high raw material cost increases and production curtailments as the company manages inventory to align with demand.

For the year Cooper generated net sales of $2.9 billion, down slightly from 2007. Net losses were $219 million for the year compared with net income of $91 million from continuing operations in 2007.

Roy Armes, chief executive officer, commented, "The tire industry and our business are under intense pressure from several angles. These include volatile raw material costs, decreased global demand and more intense competition. We are proactively taking steps to implement elements of our strategic plan and at the same time address market conditions. During the fourth quarter there were further decreases in the global demand for tires.

"We are focused on improving our global cost structure and are beginning to see some of the benefits from these actions; unfortunately much of what we have done is camouflaged by current market conditions.

"While the near term outlook is pressured by macroeconomic events around the globe, we believe the actions we are taking are appropriate and will strengthen our business longer term. We have been able to maintain considerable cash reserves to support our plans, and we maintain unused existing credit facilities. We are repositioning Cooper to emerge from the current recession a stronger competitor."

You May Also Like

Gentex to Open Production Facility in Grand Rapids

Gentex says it continues to implement meaningful solutions to the ongoing labor shortage.

Zeeland, Michigan-based Gentex Corp. announced today that it plans to open a satellite production facility that will bring 50 new jobs to the Madison Square neighborhood of Grand Rapids, Michigan. By expanding its manufacturing footprint, Gentex says it hopes to boost its employee base and provide greater access to well-paying jobs as it continues to implement meaningful solutions to address the ongoing labor shortage.

Dana Offers Spicer End Yokes for Allison Transmissions

The end yokes are designed to help minimize noise and vibration and keep drivelines running smoothly.

BorgWarner Included in 2023 Bloomberg Gender-Equality Index

The index measures gender equality across equal pay and gender pay parity, leadership and talent pipeline, inclusive culture and more.

New Bosch Campaign Focuses on Night Performance Wiper Blades

Bosch FOCUS and ENVISION wiper blades are designed to make nighttime driving safer in inclement weather, the company says.

US Motor Works Releases 9 New Water Pumps

The latest nine new water pumps are now in stock and ready to order.

Other Posts

NGK Spark Plugs Announces New Company Name and Logo 

The company says the name change is reflective of transformation in the organization’s business portfolio.

AP Emissions Releases January New Part Number Update

Coverage available for Dodge, Chrysler, Ford, Land Rover, Toyota, Lexus, Mazda and Mercedes-Benz vehicles.

NRS Brakes Offers Galvanized Brake Pads for F-150 Lightning

The brake kits cover both front and rear applications for almost 1.6 million vehicles.

Raybestos Adds New Friction, Rotor, Hydraulics Coverage

The new part numbers cover more than 19 million vehicles in operation (VIO).