Cooper Tire & Rubber Co., Findlay, Ohio, has reported net income of $23 million, or earnings per share of 32 cents, for the quarter ended Sept. 30, 2002.
This result compares favorably to the loss of $20 million the company recorded in the third quarter of 2001, due to charges relating to a proposed settlement of class action litigation.
Net sales for the quarter rose 6% to $839 million compared to $791 million last year, while operating profit for the third quarter of 2002 was $55 million and cash flow from operations was $112 million.
For the first nine months of the year, Cooper generated net sales of $2.5 billion and net income of $88 million.
The net income of $23 million for the third quarter of 2002 was up 28% compared to the $18 million recorded, excluding class action charges, in the same period last year. Operating profit was $55 million in the third quarter compared to $52 million last year.
For the first nine months, on the same basis, net income was $88 million, up 87% compared to $47 million in the same period last year, while operating profit was $195 million compared to $137 million last year.
Commenting on the quarter's results, Thomas A. Dattilo, Cooper's chairman, president and chief executive officer, said, "Our automotive components business is really beginning to come together, just as we planned and as we have been saying. We have a steady flow of significant new business coming on stream now and continuing through 2003 and 2004. All our hard work and preparation over the past 18 months is allowing us to launch and deliver that business successfully and profitably.
"On the other hand, the tire industry is facing tougher conditions from both a manufacturing and a marketing perspective," Dattilo continued. "Manufacturing costs, including raw materials, have been increasing steadily while product demand for the industry overall is down. Our unit sales performance continues to outpace the industry."