Cooper announces mid-term plans to achieve targets
Cooper Tire & Rubber Company has revealed plans to support five-year mid-term targets for operating profit of 10 to 14 percent as well as annual unit volume growth in the low- to mid-single digits and return on invested capital of 14 to 16 percent.
“Three themes—the increased influence of consumers, underlying trends in the auto industry and consolidation in distribution—are driving changes in the tyre business and Cooper is well positioned to benefit from them. Our brand strength and attractive value proposition represent a solid foundation to build on with consumers, which is important as we move into additional growth channels. Cooper’s emerging OE business will drive enhanced product technology and keep us current with emerging trends such as electric and autonomous vehicles that we believe will be positive for the replacement tyre market going forward. Finally, recent consolidation in distribution within the industry has created disruption and is pressuring long-standing relationships. Disruption creates opportunities, and Cooper is taking immediate action to benefit,” said Brad Hughes, President & Chief Executive Officer.
The company is enhancing its focus on fast-growing premium product lines, accelerating the cadence of new product introductions, such as its upcoming AT3TM tyre line, and enhancing consumer involvement in product development and testing. Besides, Cooper increases its presence in the fastest-growing sales channels, including mass merchandisers, auto dealers and e-commerce.
In Asia, Cooper is focused on continuing to build its OE business. In China, the company has fitments on 47 platforms including five of the top-10 selling SUVs in 2017. In the global OE market, Cooper has established a partnership with Volkswagen and is finalizing collaboration with a premium European automaker, the company said.