Cooper Tire & Rubber Co.
) posted break-even earnings in the third quarter of 2013, down
33% from $1.17 per share in the prior-year quarter. The results
lagged the Zacks Consensus Estimate of 54 cents by a substantial
margin. Net loss amounted to $0.17 million as against net income
of $74 million in the third quarter of 2012.
Revenues of Cooper Tire fell 24% year over year to $832
million in the quarter, missing the Zacks Consensus Estimate of
Operating profit declined to $27.9 million (3.4% of sales)
from $129.6 million (11.8%) a year ago. Operating profit in the
quarter includes a loss of $29 million related to the strike by
workers at Cooper Tire's Chinese joint venture, costs of $5
million related to the terminated merger agreement with Apollo
Tyres Ltd., unfavorable pricing and mix of $76 million, partially
offset by a gain of $36 million from lower raw materials costs.
Lower unit volumes, increased competition and higher
manufacturing costs also affected the results.
The North American Tire Operations recorded a 22.5% decline in
revenues to $633 million. Operating profit in the segment
declined to $38.8 million from $104.8 million in the third
quarter of 2012.
The International Tire Operations posted a 35.7% decline in
revenues to $264.5 million. Operating profit fell 91.3% to $3.1
million from $35.5 million a year ago.
Cooper Tire had cash and cash equivalents of $309.8 million as
of Sep 30, 2013, up from $271.5 million in the corresponding
year-ago quarter end. Long-term debt was $344.3 million as of Sep
30, 2013, translating into a long-term debt-to-capitalization
ratio of 25.1%. This compares with $339 million or 27.9% as of
Sep 30, 2012.
Cooper Tire expects raw material costs to decline sequentially
by 1.3% in the fourth quarter of 2013. For 2013, capital
expenditures are expected between $180 million and $190 million.
The company expects to report cash and cash equivalents of about
$400 million as of Dec 31, 2013.
Cooper Tire & Rubber Company currently carries a Zacks
Rank #3 (Hold). Other stocks that are performing well in the
Allison Transmission Holdings, Inc.
STRATTEC Security Corporation
). Allison Transmission and STRATTEC carry a Zacks Rank #1
(Strong Buy) while Gentex Corp. has a Zacks Rank #2 (Buy).
ALLISON TRANSMN (ALSN): Free Stock Analysis
COOPER TIRE (CTB): Free Stock Analysis Report
GENTEX CORP (GNTX): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
To read this article on Zacks.com click here.