Cooper posts strong results

Selling more tires, Cooper Tire & Rubber Co. earned $22 million profit last quarter, compared with a $12 million loss a year earlier, the company reported Monday. Earnings amounted to 43 cents per diluted share in the January-March quarter. Sales in the quarter rose 23% from a year earlier to $656 million. "We are pleased to have delivered strong first quarter operating results. Our teams continued to do a great job executing our strategy, which resulted in first quarter 2021 volume that exceeded not only the coronavirus-impacted 2020 level, but also 2019 in both segments," said Chief Executive Officer Brad Hughes. "Within the Americas segment, our U.S. volume significantly outperformed the (U.S. Tire Manufacturers Association) and the total industry. Our international segment volume increased nearly 50% compared to the first quarter of 2020." Cooper sold over 16% more tires than in the same period a year earlier. "Demand remained strong for the industry and Cooper in the first quarter. Our unit volume performance in the quarter, while strong, continued to be constrained by supply that fell short of demand, caused in part by severe weather in the southern U.S. that impacted our ability to produce and move products," Hughes said. In Cooper's Americas Tire segment, operating profit increased 473% to $6 million last quarter. Its sales rose 23% to $562 million. Cooper's International Tire Operations generated $3 million operating profit. A year earlier it had a $10 million loss. Sales in the segment increased 36% to $139 million. In addition, Cooper stockholders on Friday overwhelmingly voted to approve Cooper's sale to The Goodyear Tire & Rubber Co., which was announced in February. About 99% of votes cast were in favor of the transaction. Goodyear is not required to hold a vote of its stockholders to approve the deal. Goodyear's purchase of Cooper is expected to close in the second half of 2021, but it could close sooner, Hughes said.