Cooper Tire & Rubber Company (CTB) has reported a 48.21 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $30.56 million, or $0.57 a share in the quarter, compared with $59 million, or $1.05 a share for the same period last year.

Revenue during the quarter went down marginally by 1.04 percent to $643.02 million from $649.78 million in the previous year period. Gross margin for the quarter contracted 606 basis points over the previous year period to 17.09 percent. Total expenses were 92.43 percent of quarterly revenues, up from 85.98 percent for the same period last year. That has resulted in a contraction of 645 basis points in operating margin to 7.57 percent.

Operating income for the quarter was $48.67 million, compared with $91.10 million in the previous year period.

"As anticipated, the first quarter was impacted by a dramatic increase in raw material costs. For Cooper, which is on the LIFO accounting method in the U.S., increased raw material costs reduced profits by $50 million, which was partially offset by price and mix improvements of $8 million. In addition, U.S. unit sales volume was down as a result of the timing of price increases and aggressive promotional activity by competitors, as well as overall weaker industry sell-out volumes. We incurred higher manufacturing costs in North America as we managed our inventory levels by reducing production. On the positive side, our U.S. TBR volume was up 32 percent, Latin America region unit volume was up nearly 16 percent, and International segment volume was up 31 percent. Combined, global unit volume increased nearly 3 percent year over year, and we generated a 16.6 percent return on invested capital for the trailing four quarters. We believe Cooper is well positioned as we head into the remainder of 2017," said Cooper President & Chief Executive Officer Brad Hughes.

Cooper Tire & Rubber Co has spent $53.93 million cash to meet operating activities during the quarter as against cash inflow of $3.71 million in the last year period.

The company has spent $44.59 million cash to meet investing activities during the quarter as against cash outgo of $36.15 million in the last year period. It has incurred capital expenditure of $44.59 million on net basis during the quarter, up 23.36 percent or $8.44 million from year ago period.

The company has spent $43.58 million cash to carry out financing activities during the quarter as against cash outgo of $37.43 million in the last year period.

Cash and cash equivalents stood at $365.05 million as on Mar. 31, 2017, down 15.89 percent or $68.95 million from $434 million on Mar. 31, 2016.

Debt moves up marginally Cooper Tire & Rubber Co has witnessed an increase in total debt over the last one year. It stood at $312.47 million as on Mar. 31, 2017, up 2.73 percent or $8.29 million from $304.17 million on Mar. 31, 2016. Interest coverage ratio deteriorated to 6.22 for the quarter from 13.73 for the same period last year.