Cooper Tire & Rubber Company (NYSE: CTB)
today reported results for the third quarter of 2012. Net sales were a record for any quarter of $1.1 billion, an increase of $47 million, or 4%, compared with the same period a year ago. Operating profit was a record for any quarter of $130 million, $82 million higher than third quarter 2011 and 11.8% of net sales. Net income attributable to Cooper Tire & Rubber Company was a third quarter record of $74 million, or $1.17 per share on a diluted basis, and compares with $17 million, or $0.27 per share, for the same period last year.
"Our third quarter financial results include several record performances for Cooper Tire,” said Chief Executive Officer Roy Armes. "Total global volume grew by 5%. Once again, our U.S. volumes grew while the overall industry declined. We believe our ability to outpace the industry is attributable to strong execution of our strategic plan, especially our focus on new product introductions that are positioning Cooper as the consumer choice for performance and value. In addition, our initiatives to improve efficiency helped lower costs, and we benefitted along with the industry from lower raw material costs. We are pleased with our teams and their ability to drive results around the world, which should continue to deliver value to our shareholders.”
Third quarter profits were positively impacted by lower raw material costs of $144 million, volume increases totaling $9 million and $7 million in manufacturing efficiencies. These profit contributors were partially offset by $36 million in unfavorable price and mix, $28 million in higher selling, general and administrative costs as the company continued to invest in expanding distribution networks and promoting Cooper brands, $7 million in higher product liability costs and $7 million in “other” costs, which included higher pension expense. Higher incentive compensation costs, resulting from higher profits, affected selling, general and administrative costs and other costs.