Cooper Tyre’s Q2 profit drops 36% year over year
Cooper Tyre and Rubber has reported that its Q2 net profit fell to $45.3 million, or $0.85 cents a share, from $70.7 million, or $1.27 a share, in the same period a year ago.
Revenue for the period fell to $720.8 million from $740.3 million Unit volume declined slightly by 0.5%, as less activity in North America offset growth in international market, the tyre maker said. Higher manufacturing costs and raw material prices were an issue for Cooper in Q2 with an increase of 20.7% or $60 million over 2016 figures.
Chief executive Brad Hughes said: “The tyre industry continues to face turbulence in the US market in the form of raw material cost variability, weak trends in retail sell-out of tyres to consumers, elevated inventory in the channels and a fluid pricing and promotional landscape.” He said industry conditions are likely to persist in Q3. “Raw material costs are trending down at present, but may remain volatile, and we expect that uncertain consumer demand may contribute to continued high levels of promotional activity,” Hughes added.