Cooper Tire & Rubber Company (NYSE: CTB) today reported results for the fourth quarter and full year 2013. Fourth quarter net sales were $861 million, a decrease of $201 million, or 19%, compared with the same period a year ago. Operating profit for the fourth quarter was $47 million, which is $77 million lower than fourth quarter 2012 and 5.5% of net sales. The company reported net income attributable to Cooper Tire & Rubber Company of $0.31 per share, or $20 million, in the fourth quarter. This compares with $73 million, or $1.15 per share, for the same period last year.
“Delivering operating profit of $241 million in 2013 and exiting the year with a strong balance sheet is a testament to the dedication and commitment of Cooper people worldwide and to the resilience of our business model,” said Cooper Chairman, Chief Executive Officer and President Roy Armes. “These results were achieved despite several unique challenges in 2013, the impact of which will diminish as we move forward in 2014. I am proud of our organization and confident in our strategic plan, which we believe will produce results that create value for our shareholders over the long term.”
Fourth quarter profits compared with the prior year included $27 million in unusual items related to the negative impacts of labor actions taken at the Cooper Chengshan (Shandong) Tire Company, Ltd. (CCT) joint venture. This figure included $25 million from lower volumes in the North America and International business segments and $2 million of manufacturing inefficiencies in the International business segment. Fourth quarter results also included $9 million of costs resulting from the now terminated merger agreement with Apollo Tyres. In addition to these unusual items, unfavorable price and mix reduced profits by $68 million and were only partially offset by $31 million of lower raw material costs. Manufacturing costs were unfavorable by $10 million, including $11 million of costs from production curtailments in North American plants. Lower volumes not related to CCT reduced profits by $8 million compared with the same period in 2012. Selling, general and administrative costs, excluding merger related expenses, were $14 million lower than the fourth quarter of 2012 reflecting lower incentive compensation expenses and lower stock-based liabilities.