Cooper Tire Q1income falls on lower sales
Cooper Tire & Rubber Company’s first quarter net income plunged 19% on lower sales in domestic and international markets. The company’s net income for the first quarter was $45.43 million or $0.71 per share against from $56.08 million or $0.87 per share in the same period of last year. On 6% and 9% declines in sales in the North America and international operations respectively, the company’s net sale for the quarter fell 7.6% or $65 million to $796 million from the same period of last year.
The US tyre maker’s net sales for the first quarter of last year stood at $862 million. Operating profit for the quarter was $81 million, which is $16 million lower than the first quarter of 2013 and 10.2% of net sales.
“Cooper is off to a strong start in 2014, which is our 100th year in the tyre business,” said Chairman, Chief Executive Officer and President Roy Armes. “Our first quarter operating profit is the second-best for a first quarter in our company’s history, topped only by last year’s first quarter, when we set an all-time profit record,” he said.
In North America, the company’ s sales declined 6% to $563 million compared with $602 million in the Q1 2013. However, unit shipments for the North American segment up 5% compared with the year-ago period. Sales in international operation for the first quarter of 2014 dropped 9% to $310 million from a year-ago period.