Cooper Tire & Rubber Company (NYSE:CTB) reported second quarter 2019 net income of $9 million, or diluted earnings per share of $0.18, compared with $15 million, or $0.30 per share, last year.
Net sales decreased 2.8% in the second quarter to $679 million. Unit volume decreased 4.9% compared to the second quarter of 2018.
Operating profit was $32 million, or 4.7% of net sales.
Cooper's second quarter raw material index decreased 1.2 percent compared to the second quarter of 2018. The raw material index increased sequentially from 160.4 in the first quarter of 2019 to 161.8 in the second quarter of 2019.
At the end of the second quarter, Cooper had $112 million in unrestricted cash and cash equivalents compared with $180 million at the end of the second quarter of 2018. Also, as of the end of the second quarter, the company had invested $49 million in its new joint venture with Sailun Vietnam.
"Our second-quarter operating profit margin improved sequentially from the first quarter, and the Americas segment delivered improved operating profit despite new and incremental tariffs this year," said Cooper CEO Brad Hughes.
"Our International segment was challenged by the ongoing decline within the new vehicle market in China and a weak replacement tire market in Europe.
"While we are not satisfied with the lower unit volume in the second quarter, our strategic initiatives are taking hold, and we are confident that they will contribute more meaningfully to unit volume growth in 2020."
CTB shares sank $2.75, or 9%, to $27.72
Related Stories
