Join        Login             Stock Quote

Cooper Tire & Rubber (CTB) 4Q Profit Beat Estimates On Lower Raw Material Costs

 February 25, 2013 08:52 AM

(By Balaseshan) Cooper Tire & Rubber Co. (NYSE: CTB) reported better-than-expected quarterly results, helped by sales growth and lower raw material costs, sending its shares up 6.34 percent in premarket.

Earnings attributable to the replacement tires company increased to $72.94 million or $1.15 per share for the fourth quarter from $32 million or $0.51 per share in the year-ago quarter.

The year-ago quarter excludes the one-time, non-cash impact of $177 million or $2.82 per share due to the release of most of the company's valuation allowance against U.S. deferred tax assets and related expense effects.

[Related -Stocks End Lower Amid Fed Uncertainty; First Solar, Inc. (FSLR) Plunges]

Net sales rose 2 percent to $1.06 billion.

Wall Street analysts, on average, expected earnings of $0.85 per share on sales of $1.03 billion.

North America Tire Operations sales increased 5 percent to $811 million, on higher unit volumes as well as higher price and mix. Unit shipments for the North American segment rose 2 percent.

International Tire Operations sales fell 9 percent to $342 million, as higher unit volumes and favorable currency translation were more than offset by lower pricing and mix. Sales volumes in Asia decreased 2 percent on reduced passenger tire exports, while European sales volumes grew 23 percent on incremental volumes from its operation in Serbia and growth in Eastern Europe.

"Third quarter profits were positively impacted by lower raw material costs of $101 million, volume increases totaling $5 million, $2 million in lower product liability costs, and $9 million in manufacturing efficiencies," the company said.

[Related -Hewlett-Packard Company (HPQ): Bulls Snap Up Weekly Calls On Hewlett-Packard]

Looking ahead for the first quarter, Cooper Tire expects raw material prices to be about the same as the prior quarter.

The company said the long-term outlook for raw material prices will be to generally trend higher. Capital expenditures for 2013 are projected to be between $195 million and $215 million.

CTB ended Friday's regular session at $25.39. The stock has been trading in the 52-week range between $13.82 and $26.91.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTackling China's Debt Problem: Can Debt-Equity Conversions Help?

China’s high and rising corporate debt problem and how best to address it has received much attention read on...

article imageWill Job Growth Kill The Bear-Market Signal For Stocks?

It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.