Cooper posts sales gains, net losses in full-year

Findlay, Ohio - Cooper Tire & Rubber Co. posted double digit sales gains in both the fourth quarter and full-year 2006, but its net loss deepened in the periods as management said it will continue cost-cutting and profit improvement plans.

The Findlay-based tyre maker´s sales for the year rose 24.2 percent to $2680 million.

Cooper said the gains came primarily from the addition of Cooper Chengshan (Shandong) Tire Co. Ltd. operations in China, which the tyre maker bought in February 2006. Improved sales volume, pricing and mix in North America and Europe also contributed to the sales increases, the firm said.

Cooper's North American Tire operations recorded a seven percent rise to $2096 million in the full year, up from $1955 million a year ago. The comapny said it recorded an operating loss of $4 million compared to a $33 million profit a year earlier.

In the international division, which includes Europe and China, the group said sales more than doubled to $680 million from $305 million. The unit went into profit, recording operating result of $9 million, compared to a loss of $1 million a year ago.

Cooper's President and Chief Executive Officer Roy Armes added that Cooper would continue the cost cutting and profit improvement plans the firm had highlighted last fall under interim CEO Byron Pond. The firm said many of these projects are expected to be completed this year.

Production also has recently started at Cooper´s joint venture plant with Kenda Rubber Industrial Co. Ltd. in China. Cooper previously has said the plant should provide Cooper about 1 million tyres this year and about 6 million to 7 million tyres at full capacity.

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Press release from Cooper Tire