Selling more tires and having reduced raw materials costs, Cooper Tire & Rubber Co. increased profit by 7.6 percent last quarter to $38.2 million.
Earnings amounted to 59 cents per share in the April-June quarter.
Sales increased only slightly, by 0.5 percent, to $888.7 million. But Cooper Tire sold more tires and its expense for raw materials rubber, oil-derived materials and steel decreased.
Cooper Tire & Rubber sold 10 percent more tires globally than a year earlier. Competitor Goodyear Tire & Rubber Co. sold 6 percent more replacement tires last quarter. For the entire tire industry, 3.4 percent more tires were sold in the United States. Cooper sold 6.7 percent more in the United States.
“We continued our strong performance in what is usually a seasonally weak quarter, posting very good volume growth in most geographic regions,” said Roy Armes, chief executive officer of Cooper Tire. “Pricing decreased, mainly driven by lower raw material costs, but the 10-percent global Unit growth, along withour focus on cost reductions, helped us exceed last years operating (profit) margin.”
In fact, 8.6 cents on every dollar in sales became operating profit last quarter for Cooper. A year earlier, 7.8 cents on every dollar in sales became operating profit.