Shares price of
Cooper Tire & Rubber Co.
) increased 6.8% to $27.48 on May 2, after the company reported
better-than-expected results. Earnings in the first quarter of
2014 fell significantly to 71 cents from 87 cents per share in
the prior-year quarter. However, the figure significantly
surpassed the Zacks Consensus Estimate of 49 cents. Net income
amounted to $45 million as against $56 million in the first
quarter of 2013.
Revenues of Cooper Tire declined 7.6% year over year to $796
million in the quarter, lagging the Zacks Consensus Estimate of
Operating profit declined to $81 million (10.2% of sales) from
$97 million (11.2%) a year ago.
North American Tire Operations
recorded a 6% decline in revenues to $563 million. Operating
profit in the segment deteriorated to $69 million or 12.2% of
sales from $72 million or 11.9% in the first quarter of 2013.
International Tire Operations
posted a 9% fall in revenues to $310 million. The decrease can be
attributed to lower unit volumes and unfavorable pricing and mix,
partially offset by favorable currency effects. Operating profit
dropped to $23 million or 7.5% of sales from $30 million or 8.8%
a year ago.
Cooper Tire had cash and cash equivalents of $336 million as
of Mar 31, 2014, up from $272 million in the corresponding
year-ago quarter end. Long-term debt stood at $347 million as of
Mar 31, 2014, translating into a long-term debt-to-capitalization
ratio of 25.7% against $351.6 million of debt and long-term
debt-to-capitalization ratio of 30.1% as of Mar 31, 2013.
Cooper Tire expects raw material costs to remain flat
sequentially in the second quarter of 2014. For 2014, capital
expenditures are expected between $165 million and $175
Cooper Tire & Rubber Company currently carries a Zacks
Rank #3 (Hold). Some better-ranked stocks worth considering in
the sector are
Tower International, Inc.
Modine Manufacturing Company
), all of which carry a Zacks Rank #1 (Strong Buy).
COOPER TIRE (CTB): Free Stock Analysis Report
MODINE MANUFACT (MOD): Free Stock Analysis
GENTHERM INC (THRM): Free Stock Analysis
TOWER INTL INC (TOWR): Free Stock Analysis
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