FINDLAY, Ohio—Cooper Tire & Rubber Co. said Wednesday its first-quarter profit tumbled 92 percent as costs for rubber and other raw materials rose and North American consumers put off tire purchases.
Net income for the three months ended March 31 fell to $1.7 million, or 3 cents per share, compared with $20.8 million, or 33 cents per share, in the year-earlier quarter.
Analysts polled by Thomson Financial expected, on average, earnings per share of 10 cents.
Revenue rose to $679.3 million from $670 million, slightly less than the $680.4 million analysts expected.
Tire sales in North America fell 3 percent and operating profit was about a third of what it was a year ago. This offset a 27 percent increase in international sales, which resulted from higher prices and greater production.
Cooper noted that sales of tires for economy passenger cars and light trucks declined the most in the North American market.
The company also said the weak dollar raised the cost of natural rubber and oil-derived materials and noted that products liability expense climbed $14 million.
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