Cooper Tire & Rubber Company has reported a net loss of US$143m, or US$2.43 per share, for the quarter ended Dec. 31, 2008.


Net sales for the period were US$636m, down US$130m from the previous year. Cooper said the decreased revenues were driven by volume declines offset by improved pricing and mix.


Cooper’s results during the quarter included pretax restructuring charges of US$76m related to the impending closure of its facility in Albany, Ga.


For the year Cooper generated net sales of US$2.9bn, down slightly from 2007. Net losses were US$219m for the year compared with net income of US$91m from continuing operations in 2007.


Cooper said high prices for raw materials, coupled with the use of last-in, first-out (LIFO) cost flow assumptions for inventory accounting in North America, have contributed to decreased earnings.

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Roy Armes, Chief Executive Officer, commented, “The tyre industry and our business are under intense pressure from several angles. These include volatile raw material costs, decreased global demand, and more intense competition. We are proactively taking steps to implement elements of our strategic plan and at the same time address market conditions. During the fourth quarter there were further decreases in the global demand for tires.


“We are focused on improving our global cost structure and are beginning to see some of the benefits from these actions; unfortunately much of what we have done is camouflaged by current market conditions.


“While the near term outlook is pressured by macroeconomic events around the globe, we believe the actions we are taking are appropriate and will strengthen our business longer term. We have been able to maintain considerable cash reserves to support our plans, and we maintain unused existing credit facilities. We are repositioning Cooper to emerge from the current recession a stronger competitor.”