Home » NEWS » Manufacturing » Cooper Tire sales and profit down for volume drops
Thomas Wells | Daily Journal

Cooper Tire sales and profit down for volume drops

Cooper Tire & Rubber Co. on Tuesday reported earnings of $77 million for all of 2018, a 19 percent drop from the $95 million it earned a year earlier. Sales totaled $2.81 billion, down from $2.85 billion.

The results included a $34 million goodwill impairment charge.

The Findlay, Ohio-based company said consolidated unit volume fell 2.4 percent.

For the fourth quarter, sales increased 1.8 percent to $770 million. Operating making for $25 million; without the goodwill charge, operating profit would have been $59 million.

Cooper President and CEO Brad Hughes said, “As projected, in the fourth quarter we drove unit volume growth in the U.S., which was offset by volume declines in our other regions, reflecting economic and political factors. Raw material costs improved sequentially, but were up on a year-over-year basis by nearly 8 percent.”

Hughes also said the company expects growth in tire demand, particularly in the U.S.

Ahead of the earnings report, last week the company announced a quarterly dividend of 10.5 cents per share on common stock, payable March 29 to stockholders of record at the close of business March 1, 2019. It will be Cooper’s 188th consecutive quarterly dividend.

Cooper employs some 1,400 at its plant in Tupelo, where it has operated since 1984. Last year, the facility rolled out its 375 millionth tire.

Earlier this week, Cooper said that members of United Steelworkers Local 556L in Clarksdale ratified a new four-year labor agreement, which covers more than 40 USW members.

The Tupelo plant is not unionized, and attempts in the past to organize the plant have been unsuccessful.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About For the MBJ

Leave a Reply