Cooper Tire and Rubber Co. has released its 2017 second quarter (Q2) results and reported an operating profit of $75 million, or 10.4 percent of net sales, which is a decrease of $35 million from the prior year which the company said is due volatile raw material costs, product pricing and a promotional market environment.

The company’s raw material costs increased by $60 million from the prior year.

“Cooper reaffirms our guidance for full year 2017 operating profit margin to be at the high end of our previously projected 8 to 10 percent range. This is based on a better than expected second quarter operating profit margin of 10.4 percent, and a second half that we believe will also come in at the high end of that range,” said Brad Hughes, the company’s president and chief executive officer.

Cooper Tire has reported its second quarter 2017 net income of $45 million compared with $71 million last year.

“The tire industry continues to face turbulence in the U.S. market in the form of raw material cost variability, weak trends in retail sell-out of tires to consumers, elevated inventory in the channels and a fluid pricing and promotional landscape,” said Hughes. “As we continued to respond to these challenges and remained market facing with pricing and promotions, Cooper improved volumes in the U.S. from the first quarter to the second quarter.”

Second quarter net sales were $721 million, a decrease of 2.6 percent compared with $740 million in the second quarter of 2016. Second quarter net sales were negatively impacted by $33 million of lower unit volume and $9 million of negative foreign currency impact, partially offset by $23 million of favorable price and mix, primarily due to net price increases related to higher raw material costs. Overall, Cooper’s second quarter unit volume was down 0.5 percent year over year.