Cooper Tire & Rubber Co. reported 2015 first half net sales are down year-over-year, but the tiremaker’s net income is up.
Net sales for the first half of 2015 were roughly $1.41 billion compared to $1.68 billion in 2014. However, net income was up in the first half of 2015 to $102.6 million versus just $144.8 million in 2014.
Cooper attributes its sales decline to the absence of its joint venture Cooper Chengshan (Shandong) Tire Co. The tiremaker sold its shares in the venture at the end of 2014.
Despite overall sales being down in the first half of 2015, Cooper reported its American tire operations sales were up 5.3% in the second quarter compared to last year.
“Our second quarter performance was very strong as the positive trends from the first quarter continued, giving Cooper a strong first half of 2015,” said Roy Armes, chairman, CEO and president of Cooper.
For the second half of 2015 Cooper expects costs in its Americas segment to be higher compared to the first half the of year, it said.
“In the second half of 2015, we anticipate that Cooper will incur slightly higher raw material and other costs, which will somewhat diminish the strength of the operating profit margins we had in the first half of this year, and will impact what is traditionally our strongest half of the year,” Armes said.
“As we look toward the second half of 2015 we expect global tire markets to remain highly competitive,” Armes shared. “Our new products and improving mix of sales focused on higher value and higher margin tires positions Cooper well in such an environment. For the full year, we expect to exceed industry unit volume growth in the United States and continue strong unit volume growth in the international markets. Our success in growing unit volumes in the International segment in the second quarter is encouraging, and we will continue to focus on growth in all regions. We are committed to making the appropriate investments to support our strategic growth plans.”