Cooper posts improved results in third quarter

ERJ staff report (TB)

Findlay, Ohio (Nov. 2, 2009) - Cooper Tire & Rubber Co. posted a net profit of $46.8 million for the third quarter, compared with a $55.4 million loss a year earlier, as the tyre maker benefited from lower raw material costs and improved manufacturing costs. Sales rose 1.1 percent to $802.3 million.

Cooper posted operating profits of $70.7 million for the quarter, compared with a $47 million loss during 2008's third quarter.

The company said the positive impact of lower raw material costs and improvements on the manufacturing side of the business were offset by unfavorable price and product mix along with restructuring charted. Cooper stopped production at its tire factory in Albany, Ga., during the quarter and incurred related restructuring costs of $13 million during the three-month period. To date, Cooper has had $113 million of restructuring costs related to the Albany closure, an amount it expects to ultimately be between $120 million and $145 million, of which 60-70 percent will be non-cash charges.

Through the first nine months of 2009, Cooper had net income of $12.6 million, compared with a $75.9 million loss last year. Sales fell 10.7 percent to just more than $2 billion.

North American tire sales fell 2 percent to $574 million during the third quarter. Operating profit in the region was $48 million, compared with a loss of $51 million during the like period last year.

International tire sales rose 4 percent to $297 million on the quarter. Asian operations saw sales volume jump 28 percent, while European operations has decreased unit sales of 13 percent. Operating profits rose more than four-fold to $30 million.

From Tire Business (A Crain publication)

SEC filing from Cooper

Transcript of analysts' call