Cooper Tire & Rubber Company (CTB) has reported 17.01 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $69.32 million, or $1.28 a share in the quarter, compared with $59.25 million, or $1.04 a share for the same period last year.
Revenue during the quarter went up marginally by 1.08 percent to $783.89 million from $775.55 million in the previous year period. Gross margin for the quarter contracted 56 basis points over the previous year period to 21.60 percent. Total expenses were 86.59 percent of quarterly revenues, down from 86.78 percent for the same period last year. This has led to an improvement of 19 basis points in operating margin to 13.41 percent.
Operating income for the quarter was $105.14 million, compared with $102.53 million in the previous year period.
"Through consistent execution of our strategic plan, and the favorable raw material cycle of the past few years, Cooper ended 2016 in a very strong position, achieving a record full year operating profit margin of 13.1 percent. Our profit performance was led by record operating profit in our Americas segment and substantial profit improvement in the International segment," said president & chief executive officer Brad Hughes. "In addition, we delivered unit volumes that were up nearly 8 percent in the fourth quarter, led by double-digit domestic growth in Asia and Latin America. We also continued to return cash to shareholders through our balanced capital allocation program, and remained good stewards of capital, as reflected in our 18.9 percent return on invested capital for 2016. I am proud of the work our teams around the globe did throughout 2016 to deliver these great results.
Operating cash flow improves marginallyCooper Tire & Rubber Company has generated cash of $309.80 million from operating activities during the year, up 3.16 percent or $9.48 million, when compared with the last year. Cash flow from investing activities was almost stable for the quarter at $181.03 million, when compared with the previous year period. It has incurred net capital expenditure of $169.85 million on net basis during the year, down 6.11 percent or $11.05 million from year ago.
The company has spent $118.32 million cash to carry out financing activities during the year as against cash outgo of $156.67 million in the last year period.
Cash and cash equivalents stood at $504.42 million as on Dec. 31, 2016, down 0.15 percent or $0.73 million from $505.16 million on Dec. 31, 2015.
Working capital increases marginally
Cooper Tire & Rubber Company has recorded an increase in the working capital over the last year. It stood at $919.70 million as at Dec. 31, 2016, up 2 percent or $18.08 million from $901.63 million on Dec. 31, 2015. Current ratio was at 2.84 as on Dec. 31, 2016, down from 3.08 on Dec. 31, 2015.
Debt moves upCooper Tire & Rubber Company has witnessed an increase in total debt over the last one year. It stood at $325.80 million as on Dec. 31, 2016, up 5.28 percent or $16.35 million from $309.45 million on Dec. 31, 2015. Total debt was 12.44 percent of total assets as on Dec. 31, 2016, compared with 12.70 percent on Dec. 31, 2015. Debt to equity ratio was at 0.29 as on Dec. 31, 2016, down from 0.30 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 15.27 for the quarter from 19.22 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
