Cooper Tire & Rubber Co. reported an increase of net income year-over-year in its 2016 end of year financial reports. The tiremaker had a net income of $248 million for 2016 compared with $213 million in 2016.
Cooper also reported higher operating profit for 2016 at $384 million, compared to $354 in 2015, and an increase of 7.7% in unit volume.
In spite of higher operating profit and an increase in unit volume, Cooper saw lower net sales in 2016. Cooper reported nets sales of $2,925 million in 2016 versus $2,973 million in 2015.
“Through consistent execution of our strategic plan, and the favorable raw material cycle of the past few years, Cooper ended 2016 in a very strong position, achieving a record full year operating profit margin of 13.1% Our profit performance was led by record operating profit in our Americas segment and substantial profit improvement in the International segment,” said Brad Hughes, Cooper president and CEO.
Looking ahead to 2017, Hughes said he expects raw material prices to continue to rise. In the short term he expects results to be impacted until adjustments are made for costs. However, Cooper’s business model should help the tiremaker weather these increases, Hughes shared.
“Looking ahead, we expect raw material costs—which began to increase sharply toward the end of 2016—to continue to rise in 2017. We are confident in the strength of the Cooper business model, which has led to positive mix transformation, improved speed to market with exciting new products, cost efficiencies, and other advances.
These business model improvements will help Cooper succeed during this period of rapidly rising raw material costs,” he said.
