FINDLAY — Cooper Tire & Rubber Co. on Monday reported higher profits but lower revenues in the third quarter.
The Findlay tire maker said it had profits of $68 million, or $1.18 per share, up 39 percent compared to $49 million, or 90 cents a share, for the same period a year ago. The higher profits were due largely to a $39 million benefit in operating profit related mainly to reduced product liability costs.
Net sales, which fell 2.3 percent to $734 million from an earlier $751 million, were down due to $19 million in lower unit volume and $1 million in unfavorable price and mix.
“Our third quarter performance, particularly the decline in North America unit volume, reflects continued challenges within the tire industry, including raw material cost variability, weak trends in retail sell-out of tires to consumers, elevated inventory in the channels and a fluid promotional landscape,” President and Chief Executive Officer Brad Hughes said. And the CEO said he does not foresee conditions improving initially in the fourth quarter.
“Weak sell-out of tires to consumers and heavy promotional activity are likely to persist into the fourth quarter in North America," Mr. Hughes said. "As a result, we expect that operating margin in the fourth quarter will be below our previously stated expectations.”
Cooper Tires shares closed at $32.20, down $3.58 a share in trading Monday on the New York Stock Exchange.
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