Cooper Tire reports second quarter sales and earnings.

FINDLAY, OHIO--(BUSINESS WIRE)--JULY 24, 1995--Cooper Tire & Rubber Company today announced sales and earnings for the second quarter ended June 30. Net sales for the period were $371.4 million which were 13 percent more than the sales of $329.3 million generated in the comparable quarter of 1994. Earnings during the second quarter amounted to $24.7 million, a decrease of 10 percent from earnings of $27.5 million in the 1994 period. On a per share basis, quarterly earnings were 29 cents per share versus 33 cents a year earlier.

For the first half of 1995, net sales increased 12 percent to $736.7 million compared with the 1994 period sales of $658.5 million. Earnings for the six months were $51.9 million compared with $54.0 million in the first half of 1994, a decrease of 4 percent. Per share earnings were 62 cents and 65 cents for the respective periods.

In making the announcement of Cooper's results, board chairman Patrick W. Rooney stated, "Orders for our products outpaced the industry during the period due to the strong demand by our customers. Earnings, as anticipated, were compressed by the inordinately high costs of certain raw materials which were discussed in our first quarter report and at our annual meeting.

"Recently, we have seen indications of a general stabilization in some of these costs although at high levels, and natural rubber costs have begun to decline. The effects of the declining costs of natural rubber, however, will be realized gradually," he said.

"To help offset the high raw material costs the company instituted its second tire price increase this year. This price increase, approximating 3 percent, was put into effect the last week of June and did not have any appreciable influence on our second quarter margins," he continued. "In response to leveling industry demand and the apparent end of rising raw material costs, renewed competitive forces could be a factor in the marketplace during the second half of the year," Rooney stated.

"Demand for Cooper's engineered products continued at very satisfactory levels during the quarter. We have just about completed our addition at the Bowling Green, Ohio, hose plant and expect the increased production to come on stream during the third quarter. This will help bolster operations in support of increasing demand in this product category," Rooney said.

"We expect demand for our products in the second half to remain strong barring any unforeseen negative shifts in the national economy. Our team is well-positioned to accomplish the previously announced production capacity increases. These increases are needed to accommodate additional business which will begin at a moderate rate later this year and accelerate during 1996. We believe the future at Cooper Tire & Rubber Company looks quite promising," Mr. Rooney concluded.

(Statement of income and balance sheet follows ...) -0-

                      COOPER TIRE & RUBBER COMPANY
                          STATEMENTS OF INCOME

                                   Quarter Ended       Six Months Ended
(Amounts in thousands;               June 30               June 30
 per share amounts
 in dollars)                   1995        1994       1995       1994

Revenues:
  Net sales                  $ 371,366   $ 329,339  $ 736,719  $ 658,471
  Other income                   1,164         416      2,677        631
                               372,530     329,755    739,396    659,102
Costs and expenses:
  Cost of products sold        313,790     267,648    617,721    535,292
  Selling, general,
   administrative               18,745      16,692     36,983     34,937
  Interest and debt expense        304         716        874      1,438
                               332,839     285,056    655,578    571,667

Income before income taxes      39,691      44,699     83,818     87,435

Provision for income taxes      15,030      17,240     31,940     33,470

Net income                   $  24,661   $  27,459  $  51,878  $  53,965

Net income per share             $ .29       $ .33      $ .62      $ .65

Weighted average shares
 outstanding                    83,643      83,625     83,641     83,617

Depreciation                 $  16,153   $  14,036   $ 31,957  $  27,830

Capital expenditures         $  39,613   $  17,628   $ 69,505  $  38,598

                             BALANCE SHEET

                                                     June 30

                                                1995           1994
  Assets
  Current assets:
    Cash, including short-term investments   $   52,367     $   28,732
    Accounts receivable                         266,955        227,405
    Inventories                                 136,137        121,356
    Prepaid expenses and deferred taxes          14,322         13,897
        Total current assets                    469,781        391,390
  Property, plant and equipment - net           586,328        538,460
  Other assets                                   34,761         29,681

                                             $1,090,870     $  959,531
  Liabilities and Stockholders' Equity
  Current liabilities:
    Trade payables and accrued liabilities   $  149,525     $  133,214

    Income taxes                                    979          1,989
    Current portion of debt                       5,014          5,313

        Total current liabilities               155,518        140,516
  Long-term debt                                 33,370         38,392
  Postretirement benefits other than pensions   129,911        123,347
  Other long-term liabilities                    35,027         37,787
  Deferred income taxes                          32,985         24,134
  Stockholders' equity                          704,059        595,355
                                             $1,090,870     $  959,531

These interim statements are subject to audit and year-end adjustments.

CONTACT: Cooper Tire & Rubber Company, Findlay

J. Alec Reinhardt, 419/423-1321