Cooper Tire Sales Fall Unexpected As Industry 'turbulence' Continues

Cooper Tire & Rubber Co. reported a second-quarter net profit that fell to $45.3 million, or 85 cents a share, from $70.7 million, or $1.27 a share, in the same period a year ago. The FactSet consensus for earnings per share was 74 cents. Revenue fell to $720.8 million from $740.3 million, while the FactSet consensus was for a rise to $770.7 million. Unit volume fell 0.5%, as declines in North America offset growth in international. "The tire industry continues to face turbulence in the U.S. market in the form of raw material cost variability, weak trends in retail sell-out of tires to consumers, elevated inventory in the channels and a fluid pricing and promotional landscape," said Chief Executive Brad Hughes. He said industry conditions are likely to persist into the third quarter. "Raw material costs are trending down at present, but may remain volatile, and we expect that uncertain consumer demand may contribute to continued high levels of promotional activity." The stock, which was still inactive in premarket trade, has lost 7.3% year to date, while the S&P 500 has gained 10.4%.