FINDLAY, OH — Cooper Tire & Rubber Co. has reported net income of $17.6 million or 28 cents per share for the quarter ended June 30. The improved earnings were achieved as total sales increased by 20 percent to a new second quarter record of $751 million. This compares to a net loss of $21 million generated on sales of $625 million in the second quarter of 2006.

During the quarter, the company continued to benefit from the cost reduction and profit improvement initiatives it announced in Sept. 2006, as well as improved price and mix in North America, and increased tire unit sales for the International segment. As a result, operating profit improved to $32 million compared to an operating loss of $26 million in the second quarter of 2006. The company’s net income improved to $38 million on $1.4 billion of sales. This is a $64 million improvement in net income over the same period a year ago.

The company’s North American tire operations reported sales of $554 million, up 20 percent compared to $463 million in the second quarter of 2006. This increase was driven by improved pricing, as well as increased unit volumes across all market segments. Sales of private-brand tires were particularly strong in comparison to the prior year.

Cooper’s unit shipments of light vehicle replacement tires in the U.S. were up approximately 13 percent in the quarter over the same period last year, exceeding the 3 percent increase for the industry as reported by the Rubber Manufacturers Association.

North American tire operations generated $23 million in operating profit in the quarter, or an increase of $53 million, compared to the second quarter of 2006. This improvement was the result of favorable pricing changes and the company’s cost savings and profit improvement initiatives.

Cooper President and CEO Roy Armes said, "We are excited about both the top and bottom line improvements. As our cost savings and profit improvement initiatives have been effectively executed, it has allowed us to deliver on the promises we made to improve the business. In North America, we continue to benefit from increased unit volumes and pricing. International operations are rapidly expanding sales and have seen dramatic increases year-over-year in operating profit. Our balance sheet has also improved as a result of our focus on inventory management, as well as higher volumes and improved margins. The second quarter of 2006 was an unforgettable low point for our company. I am proud of the work performed by Cooper employees around the globe. Their efforts have significantly contributed to our return to profitability."

The company has also announced the appointment of Robert Welding as a director of the company, effective immediately.

Welding is president and chief executive officer of Federal Signal Corp. and a member of Federal Signal’s board of directors. Prior to joining Federal Signal in 2003, Welding was group president of the BorgWarner Driveline Group, a $1.2 billion global business and executive vice president of BorgWarner Inc. Previously, he served as president and general manager of BorgWarner Transmission Systems, a unit of the Driveline Group. In his 20 years with BorgWarner, Welding held a variety of positions of increasing responsibility in operations and product engineering management. Prior to that, he served in various management and product engineering capacities for General Motors and Volkswagen of America. Welding began his career as a product development engineer in 1970.

Welding earned a bachelor’s degree in mechanical engineering from the University of Nebraska and a master’s in business administration from the University of Michigan. He also is a graduate of the Harvard Business School Advanced Management Program.

"Bob Welding brings a wealth of experience at the highest levels in global businesses, and will prove an invaluable resource as a member of the Cooper Tire & Rubber Board of Directors and as Cooper grows its own business around the world," Armes said.

For more information about Cooper Tire & Rubber, go to: www.coopertireandrubber.com.