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Cooper Tires reports Q3 2020 results
By TT News| Oct 29, 2020

Cooper Tires reports higher Q3 net income

Cooper Tire & Rubber Company reported Third Quarter 2020 net income of $123 million, or diluted earnings per share of $2.42, compared with net income of $29 million, or $0.58 diluted earnings per share, for the same period last year.

Global unit volume increased 0.5% compared to the third quarter of 2019. Strong light vehicle unit volume growth of 9% in the United States was offset by a unit volume decline in Latin America due to challenging market conditions and lower production levels as the company ramps up its plant in Mexico.

International segment unit volume increased 10.1%, led by Asia.

Third Quarter 2020 net sales increased 8.6% from Q3 2019 to $765 million, with increases in both the Americas and International segments. Operating profit was $172 million, or 22.4% of net sales, compared to operating profit of $53 million, or 7.5% of net sales, in 2019, the company said.

Operating profit for the Americas segment was $176 million, an all-time record for the segment in any quarter, even after excluding the $49 million benefit from the product liability adjustment.

International segment operating profit was $9 million, compared to an operating loss of $5 million for the same period a year ago.

Cooper President & Chief Executive Officer Brad Hughes said: “Following a first half that was significantly impacted by the global pandemic, our third quarter performance reflected a strong rebound for Cooper, validating our strategic initiatives and our team’s ability to execute and react quickly to market opportunities. As a result, in the U.S., our third quarter unit volume increase of 9% significantly outperformed the USTMA and exceeded the total industry. Beyond the benefit provided by an adjustment to our product liability reserves, lower raw material costs combined with favourable price, mix and volume, all contributed to a strong result for the quarter.”

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