Cooper Tire & Rubber Co. had a record operating profit of $354 million in 2015, as well as an increase in net sales and unit volume, according to the tiremaker’s 2015 financial results.
“It was an exciting year for Cooper as we took numerous steps around the globe to continue to transform and enhance our business,” said Roy Armes, Cooper chairman, CEO and president. “Our fourth quarter and full year performance was very strong, with unit volume increases in all regions and excellent operating profit. In fact, our full year operating margin of nearly 12% exceeded the 8% to 10% that we established as a mid-term goal for Cooper.”
Cooper’s $354 million operating profit accounted for 11.9% of net sales and was a 59% increase from 2014. Net sales increased 3.3% to $2.97 million and increases in all regions drove unit volume to increase 6.8% year over year. Net income was down at $213 million compared to $214 million in 2014, which included a gain of $56 million from selling its CCT joint venture in China.
In North America, Cooper has seen a 3.8% increase in net sales to $2,685 million and an operating profit increase of 53.9% at $425 million.
“We continued to execute our strategic plan and invest in operations around the globe to improve our competitive position,” Armes said. “Specifically, we invested in modernizing and enhancing our facilities and continued to invest in technology and product innovation. We are seeing a return on these investments as Cooper moves upstream, selling more high value, high margin products.”
“In 2015, we broadened our global reach and capabilities through expansion in Latin America and strategic partnerships such as our recently announced agreement to acquire a majority interest in China-based Qingdao Ge Rui Da Rubber Co., Ltd. (GRT),” Armes continued. “We look forward to another exciting year in 2016, and want to thank all of our employees around the world for their continued dedication and hard work.”
