Cooper Tire News · 08/03/2006
It’s been a busy quarter for tire makers. Cooper Tire reported that sales for the quarter ending in June 2006 were “up more than 22 percent compared to the same period a year ago,” to $625 million. Much of the increase was driven by Cooper’s acquisition of a Chinese tire maker, which offset what the company called “continuing weak demand in the replacement tire market in North America and Europe.” Cooper also declared a dividend of 10.5 cents per share, to be paid next month.
At the same time Thomas A. Dattilo, the company’s president and CEO, announced that he was resigning “to pursue another opportunity.” No word on what that opportunity is. The board chose Byron O. Pond as interim chief executive, and indicated that it was focusing its search for a permament CEO on “candidates with proven track records in the automotive or other durable goods industries.” Good idea.
What will all this mean for the retail tire customer? Probably not much, at least until a new chief executive is appointed. Although new CEOs live to put their stamp on their companies, it often takes a year or more for them to get going—and the board is just beginning its search now.
— Rim & Tire Wholesalers
