Cooper Tire & Rubber Company Second Quarter Earnings Per Share Reaches Record High.

FINDLAY, Ohio--(BUSINESS WIRE)--July 20, 1999--

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SECOND QUARTER HIGHLIGHTS:

--   Record second quarter sales and earnings
--   Engineered products strong sales reflect record levels in light
     vehicle production
--   Tire operations gain market share in North American replacement
     market
--   New Avon tire lines introduced in the U.S.
--   Cooper-Avon facility in Melksham contributes to record quarter

COOPER TIRE & RUBBER COMPANY (NYSE:CTB) today reported earnings per share of 50 cents, up 22 percent over 1998's 41 cents, achieving an all-time high level for the second quarter. Sales for the period ended June 30, 1999 were $495.4 million, an increase of 7.3 percent over 1998's $461.7 million. Earnings were $38.0 million, an increase of 17.4 percent compared to $32.3 million the year earlier. The company credited its record results to strong growth and market share gains in both its tire and engineered products operations and significant progress from its "Cooper 21" strategic planning initiatives.

Sales were strong in both segments of the company with tire operations reporting sales of $368.4 million, an increase of 6.0 percent over the 1998 period. For engineered products, sales were $126.9 million, an increase of 11.2 percent compared to the same quarter in 1998. Segment profits were $42.6 million for tire operations, an increase of 28.4 percent from the year earlier quarter. For engineered products, segment profits were $16.7 million, an increase of 4.6 percent, excluding a one-time gain of $1.9 million that contributed to an exceptionally strong 1998 period.

For the first half of 1999, sales were $963.2 million, a gain of 7.1 percent over the 1998 period. Earnings were $69.3 million, up 17.8 percent, while earnings per share reached 91 cents, a gain of 21.3 percent over the first half of 1998. Sales for the tire operations were $720.4 million, an increase of 6.3 percent, while sales for engineered products reached $242.8 million, a gain of 9.6 percent. Segment profits totaled $75.8 million in tire operations, up 20.5 percent from the first half of 1998, and $32.2 million, an increase of 8.1 percent in engineered products.

In announcing these results, Cooper chairman and CEO, Patrick W. Rooney said, "Sales were strong in both business units. In our engineered products area, our combined sales of hoses, vibration control products and sealing systems were significantly bolstered by the record levels of North American light vehicle production during the quarter. In tires, our domestic market share for passenger and light truck tires grew nearly a full percentage point when comparing quarterly shipments. Modest raw material prices again helped us achieve positive financial results.

"Strong performance by our new private brand and regional retail customers, plus increases from existing customers boosted unit tire sales by more than 9 percent compared to the prior year's quarter. Also, our new regional retailer division began actively bringing new business on board for our Avon tire lines. During this past quarter five new lines of Avon products designed to fit the U.S. driving requirements were introduced into the U.S. market. These new lines have received enthusiastic support from the large retailers targeted for this program. Volume improvements, particularly in high performance passenger tires, and cost reduction efforts have resulted in improved results in Europe. We are pleased with the progress in Melksham and expect continued improvements in profitability," he concluded.

"We are delighted to see continued progress from cost reduction programs which have received even greater emphasis with our 'Cooper 21' strategic planning program," commented Thomas A. Dattilo, Cooper's president and COO. "We have challenged our team to achieve cost savings in virtually every operation of the company, setting a goal of $40 million in cost reduction for 1999. The strong performance reported this quarter is continuing evidence of our ability to improve profitability in tough competitive environments, and keeps us on track towards achieving the goal we've set for ourselves.

"Since the 'Cooper 21' strategic planning process began we have identified opportunities and then taken action to make the company a stronger competitor. Our Avon and Dean Tire acquisitions, along with the Pirelli alliance, have enabled the tire operation to strengthen our product offerings and programs in the fast-growing markets for replacement tire sales: North America and Europe. In our quest to lower costs, our operational excellence program has driven savings in many production areas. For engineered products, we have exciting developments in the areas of new products and new business, and are actively exploring opportunities for platforms that will increase shareholder value well into the new century.

"Our management team and employees worldwide are optimistic about Cooper's ability to compete in the next millennium. We are constantly searching the horizon for new opportunities which will deliver value for shareholders and strengthen their investment in Cooper Tire & Rubber Company," Dattilo concluded.

REGULAR DIVIDEND DECLARED ON COOPER TIRE STOCK

The board of directors of Cooper Tire & Rubber Company declared a quarterly dividend of 10.5 cents per share on common stock, payable September 30, 1999 to stockholders of record September 9, 1999.

COMPANY DESCRIPTION

Founded in 1914, Cooper Tire & Rubber Company is a leading manufacturer of tires and engineered rubber products widely recognized for its strong customer service commitment. In tires, the company exclusively targets the larger replacement market, with a mix divided between proprietary house brand and private label customers. Cooper markets its tires in more than 100 countries around the world. In engineered rubber products, the company serves virtually every light vehicle manufacturer in the U.S. and Canada, as well as an expanding number of European-based original equipment manufacturers. For more information on Cooper Tire & Rubber Company, visit the company's web site at www.coopertire.com.

FORWARD-LOOKING STATEMENTS 

This report contains forward-looking statements regarding expectations for future financial performance which involve uncertainty and risk. It is possible the company's future financial performance may differ from expectations due to a variety of factors including, but not limited to: changes in economic conditions in the world, increased competitive activity, consolidation among its competitors and customers, technology advancements, fluctuations in raw material and energy prices, changes in interest and foreign exchange rates, and other unanticipated events and conditions.

It is not possible to foresee or identify all such factors. Any forward-looking statements in this report are based on certain assumptions and analysis made by the company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that any such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected. The company makes no commitment to update any forward-looking statement included herein, or to disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement.

(Statements of income and balance sheets follow...) -0-

                     COOPER TIRE & RUBBER COMPANY
                  CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands         Quarter Ended        Six Months Ended
except per share amounts)        June 30                June 30
                          -------------------    --------------------
                             1999      1998         1999      1998
                          --------- ---------    --------- ----------
Revenues:
 Net sales                $495,352  $461,740     $963,239  $899,298
 Other income                  290       671        1,149     1,249
                          --------  --------     --------  --------
                           495,642   462,411      964,388   900,547

Costs and expenses:
 Cost of products sold     398,653   378,467      781,780   741,937
 Selling, general,
  administrative           33,796     28,452       65,888    56,964
 Interest                   3,596      3,764        7,499     7,613
                          --------  --------     --------  --------
                           436,045   410,683      855,167   806,514
                          --------  --------     --------  --------

Income before income
 taxes                      59,597    51,728      109,221    94,033
Provision for income
 taxes                      21,641    19,392       39,874    35,172
                          --------  --------     --------  --------
Net income                $ 37,956  $ 32,336     $ 69,347  $ 58,861
                          --------  --------     --------  --------
                          --------  --------     --------  --------

Basic and diluted
 earnings per share           $.50      $.41         $.91      $.75

Weighted average
 shares outstanding         75,913    78,850       75,895    78,849

Depreciation              $ 26,777  $ 25,207     $ 52,427  $ 49,466

Capital expenditures      $ 31,236  $ 30,825     $ 70,540  $ 58,207


                     CONSOLIDATED BALANCE SHEETS
                                                 June 30
                                         -----------------------
                                           1999         1998
                                         ----------   ----------
Assets
------
Current assets:
 Cash and cash equivalents               $   27,828   $   37,434
 Accounts receivable                        369,348      318,042
 Inventories                                206,009      209,254
 Prepaid expenses and deferred
  income taxes                               23,580       20,426
                                         ----------   ----------
   Total current assets                     626,765      585,156
Property, plant and equipment - net         900,295      868,961
Intangibles and other assets                 94,648       82,428
                                         ----------   ----------
                                         $1,621,708   $1,536,545
                                         ----------   ----------
                                         ----------   ----------

Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
 Notes payable                           $    9,593   $   11,080
 Trade payables and accrued liabilities     208,585      179,770
 Income taxes                                     0          367
 Current portion of debt                        205          272
                                         ----------   ----------
  Total current liabilities                 218,383      191,489
Long-term debt                              205,180      205,282
Postretirement benefits other
 than pensions                              154,589      148,726
Other long-term liabilities                  48,810       38,418
Deferred income taxes                        76,773       75,643
Stockholders' equity                        917,973      876,987
                                         ----------   ----------
                                         $1,621,708   $1,536,545
                                         ----------   ----------
                                         ----------   ----------


                         SEGMENT INFORMATION
                                             Six Months Ended
                                                 June 30
                                         -----------------------
                                            1999         1998
                                         ----------   ----------
Net sales:
 Tires                                   $  720,472   $  677,870
 Engineered products                        242,767      221,428
Segment profit(a)
 Tires                                       75,828       62,953
 Engineered products                         32,245       29,832

(a)Segment profit is defined as income before income taxes and other
income includes allocation of corporate interest expense.
These interim statements are subject to year-end adjustments.