Cooper Tire & Rubber Company
) reported a 37.5% rise in profits to $22.0 million or 34 cents per
share in the first quarter of 2012 from $16 million or 25 cents in
the corresponding quarter of 2011. With this, profits surpassed the
Zacks Consensus Estimate by 2 cents per share.
Revenues in the quarter hiked 9% to $984 million from $902
million in the same quarter prior year. The increase in revenues
was attributable to improvements in prices while volumes declined
slightly during the quarter. Revenues were lower than the Zacks
Consensus Estimate of $1,016 million.
Improved price and mix of $71 million offset the impact of
higher raw material costs of $8 million. Selling, general and
administrative expenses went up $9 million to $58 million in order
to expand the company's distribution network and promote its
brands. Costs related with the startup of operations in Siberia
were $3 million.
Higher manufacturing costs, including $29 million of costs
related to the labor situation at the company's manufacturing
operations in Findlay, Ohio, reduced profits by $31 million.
Further, the company expects costs (measured by the raw material
index) to increase between 5% and 7% in the second quarter of the
Revenues from the
North American Tire Operations
swelled 8% to $698 million from $644 million in the same quarter
last year. The higher sales were attributable to strong price and
mix, which was partially offset by decline in unit sales by
3%. The segment operating profit was $23 million or 3.37% of
sales compared to $21.5 million or 3.34% of sales in the first
quarter of 2011.
Revenues from the
International Tire Operations
were $404 million, up 11% from $363 million in the first quarter of
last year. The increased was favorably impacted by better price and
mix and an 8% increase in sales volume. The segment operating
profit was $33 million or 8.1% of net sales compared with $20
million or 5.5% of net sales in the first quarter of 2011.
Cooper Tire had cash and cash equivalents of $258 million as of
March 31, 2012, up from $188.5 million as of March 31, 2011.
Long-term debt was $335 million as of March 31, 2012 compared with
$317 million as of March 31. 2011.
Capital expenditures were $37 million compared to $36 million in
the corresponding quarter of 2011. In the first quarter of 2012,
the company has invested $19 million for assets to be used by its
Krusevac unit in Siberia. For 2012, it expects capital expenditures
in the range of $180 million to $210 million.
Cooper Tire & Rubber Company, a Zacks #3 Rank (Hold) stock,
believes stabilizing raw material costs, flexible manufacturing
operations, profitable investments, and competitive labor
agreements will help the company improve results despite headwinds
facing the industry.
Cooper Tire's competitor
Goodyear Tire & Rubber Company
) reported a 34% decline in profits to $84 million or 34 cents per
share in the first quarter of 2012 from $127 million or 51 cents in
the same quarter of 2011 (all excluding special items). However,
profits were significantly higher than the Zacks Consensus Estimate
of 8 cents per share during the quarter.
COOPER TIRE (CTB): Free Stock Analysis Report
GOODYEAR TIRE (GT): Free Stock Analysis Report
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