Cooper posts operating profit of $272 million in 2017
Cooper Tire & Rubber Company has reported a net sales of $2.85 billion in 2017 compared with $2.92 billion in 2016. The operating profit of $272 million, or 9.5 percent of net sales, was near the high end of the company’s previously issued mid-term guidance range of 8 to 10%. Discrete tax items, including the impact of provisional amounts related to the US tax reform, resulted in additional income tax expense of $68 million in the fourth quarter, Cooper said in a statement.
However, consolidated unit volume in 2017 decreased 0.5 percent year over year, as challenging conditions led to a unit volume decline in the US, which was nearly offset by a strong unit volume increase in Asia.
The net sales decreased 3.4% to $757 million in the fourth quarter of 2017. The operating profit was $47 million, or 6.% of net sales, which is a decrease of $58 million from the same period in 2016. Excluding the tax items, diluted earnings per share were $0.50 in the fourth quarter, the company said.
“We are pleased to have ended 2017 with operating profit margin of 9.5%, which is near the high end of our previously issued 8 to 10% guidance range. This is noteworthy given the pricing and volume challenges within the industry throughout the year, and the significant impact of higher raw material costs. We also congratulate the Asia team for the rapid integration and production ramp of our GRT joint venture in China, which produces truck and bus radial tyres,” said Brad Hughes, President & Chief Executive Officer, Cooper Tire.