Cooper Tire Rebounds In Third Quarter

After struggling in the first half of the year due to the pandemic, Cooper Tire & Rubber Company rebounded in the third quarter to post some impressive numbers.

The company reported on Thursday that their third quarter net income was $123 million, which is a big increase from their third quarter 2019 net income of $29 million.

In August, the company reported a second quarter net loss of $6 million.

“Following a first half that was significantly impacted by the global pandemic, our third quarter performance reflected a strong rebound for Cooper, validating our strategic initiatives and our teams ability to execute and react quickly to market opportunities,” said President & Chief Executive Officer Brad Hughes.

“As a result, in the U.S., our third quarter unit volume increase of 9 percent significantly outperformed the USTMA and exceeded the total industry. Beyond the benefit provided by an adjustment to our product liability reserves, lower raw material costs combined with favorable price, mix and volume, all contributed to a strong result for the quarter.”

Hughes added, “Coming off an exceptionally strong third quarter and the coronavirus-related production disruptions earlier in the year, our inventory levels are lower than normal. In the near term, this will challenge our ability to meet continuing strong customer demand. We are leveraging our global manufacturing footprint and taking actions to increase production to meet the growing demand.”