FINDLAY, Ohio, March 5 /PRNewswire-FirstCall/ -- We are issuing an
amended version of the press release issued on March 2, 2010 in
order to conform the presentation of certain balance sheet items to
the Form 10-K which was filed on the same day. No changes have been
made to the narrative of the press release. (Logo:
http://www.newscom.com/cgi-bin/prnh/20010404/COOPERLOGO ) Cooper
Tire & Rubber Company Reports Improved Fourth Quarter Results
-- Net income (attributable to Cooper Tire) of $39 million, or 63
cents per share -- 28 percent increase in unit sales -- Net sales
increase of 22 percent -- Cash and cash equivalents of $427 million
Cooper Tire & Rubber Company today reported net income of $39
million for the quarter ended Dec. 31, 2009, a $183 million
improvement from the same period in 2008. Net sales were $773
million, an increase of $137 million, or 22 percent, from the prior
year. Operating profit was $60 million for the quarter, a $224
million improvement from a loss of $164 million in 2008. The
Company reported net income of 63 cents per share during the
quarter on a diluted basis. These results included income of $6
million from discontinued operations during the quarter. Results
during the quarter included restructuring charges of $12 million,
primarily related to the closure of the Albany, Ga., facility, a
decrease of $64 million from the fourth quarter of 2008. During the
prior year same quarter, the Company also had a $31 million
non-recurring pretax charge for impairment of goodwill in the
International segment. Excluding these charges, operating profit in
the fourth quarter of 2009 improved by $129 million from the same
quarter in 2008. Stronger results for the quarter when compared to
the prior year were driven by lower raw material costs, improved
volumes and increased utilization of manufacturing capacity. These
positive impacts were partially offset by unfavorable price and
mix. For the year 2009, Cooper generated net sales of $2.8 billion,
down 4 percent from 2008. Net income was $52 million for the year -
a significant improvement from a net loss of $219 million in 2008.
The Company ended the year with $427 million in cash and cash
equivalents, reflecting strong cash flows from operations and
prudently managed resources. A payment of $97 million was made to
retire maturing parent Company debt during the fourth quarter of
2009. North American Tire Operations North American Tire Operations
sales were $566 million during the fourth quarter, up from 2008 net
sales of $511 million. Increased volumes were offset by unfavorable
price and mix. Total light vehicle tire shipments for Cooper's
North America segment in the United States increased by 22 percent,
outpacing the total industry shipment increase of 7 percent
reported by the Rubber Manufacturers Association. This improvement
occurred across all product segments as the Company was able to
increase market share in the replacement market. Operating profit
of $39 million for the fourth quarter rose by $148 million when
compared with the same period in 2008. Excluding restructuring
charges, which dropped by $64 million, the improvement from the
prior year was $84 million. Raw material cost improvements during
the quarter positively affected results by $74 million. Higher
volumes improved results by $29 million. Manufacturing operations
improved by $21 million, primarily as a result of better capacity
utilization. The segment's operating results also benefited by
approximately $15 million from the sale of units that were valued
at lower historical costs, in accordance with the use of LIFO
cost-flow methodology, as the Company liquidated inventory levels
to meet surging demand. Partially offsetting these impacts were net
unfavorable price and mix changes of $36 million. Higher other
costs, including those related to incentive and administrative
costs, were $19 million larger than the prior year. For the 12
months ended December 2009, the segment generated operating profit
before restructuring of $160 million, or 8 percent, on sales of $2
billion. International Tire Operations The Company's International
Tire Operations reported $274 million in sales, a substantial
increase of $98 million, or 56 percent, compared with the prior
year same quarter. This was the result of increased volume offset
slightly by negative price and mix. Asian operations increased
sales volumes by 92 percent, while European operations reported
increased unit sales of 6 percent. The segment's operating profit
increased $77 million, to $26 million for the fourth quarter.
Excluding the non-recurrence of a $31 million write-off of goodwill
that occurred in 2008, results improved by $46 million. This
change, when compared to the fourth quarter of 2008, resulted
partly from a $34 million improvement in raw material costs.
Improved volumes contributed $12 million. The segment's better
utilization and focus on reducing waste was a positive of $6
million. The segment also benefited approximately $9 million from
favorable currency rates and other costs when compared with the
prior year. These positives were partially offset by negative price
and mix impacts of $15 million. International sales for the total
year were $994 million, generating operating profit of $73 million,
or 7 percent of net sales. Management Commentary and Outlook Roy
Armes, Chief Executive Officer, commented, "During the fourth
quarter, we were encouraged by the stronger demand in many markets
for our tires. This improvement allowed the progress we have made
to be more visible on the bottom line. In recent years, we have
focused on strengthening the foundation of our Company in order to
leverage opportunities as they emerge and better face challenges as
they arise. We are staying the course with our strategic direction
of improving our global cost structure, profitably increasing the
top line, and enhancing organizational capabilities. "The tire
industry and the global environment continue to be fluid.
Successful implementation of the three imperatives detailed in our
Strategic Plan and improvement in market or industry conditions can
drive improved operating results. We recognize these results may
also be subjected to uncontrollable factors that impact the
replacement tire industry. Our focus remains on prudent management
of our critical resources to drive shareholder value. With recent
trends in mind, our outlook remains cautiously optimistic. The
successes we achieve, combined with improved global industry
conditions, can result in an even stronger Company with a more
consistent level of profitability." Cooper's management team will
discuss the financial and operating results for the quarter in a
conference call today at 11 a.m. Eastern time. Interested parties
may access the audio portion of that conference call on the
investor relations page of the Company's Web site at
http://www.coopertire.com/. About Cooper Tire & Rubber Company
Cooper Tire & Rubber Company is a global company that
specializes in the design, manufacture, marketing and sales of
passenger car, light truck, medium truck tires and subsidiaries
that specialize in motorcycle and racing tires. With headquarters
in Findlay, Ohio, Cooper Tire has manufacturing, sales,
distribution, technical and design facilities within its family of
companies located in 10 countries around the world. For more
information, visit Cooper Tire's Web site at
http://www.coopertire.com/. Forward-Looking Statements This report
contains what the Company believes are "forward-looking
statements," as that term is defined under the Private Securities
Litigation Reform Act of 1995, regarding projections, expectations
or matters that the Company anticipates may happen with respect to
the future performance of the industries in which the Company
operates, the economies of the United States and other countries,
or the performance of the Company itself, which involve uncertainty
and risk. Such "forward-looking statements" are generally, though
not always, preceded by words such as "anticipates," "expects,"
"believes," "projects," "intends," "plans," "estimates," and
similar terms that connote a view to the future and are not merely
recitations of historical fact. Such statements are made solely on
the basis of the Company's current views and perceptions of future
events, and there can be no assurance that such statements will
prove to be true. It is possible that actual results may differ
materially from those projections or expectations due to a variety
of factors, including but not limited to: -- changes in economic
and business conditions in the world; -- the failure to achieve
expected sales levels; -- consolidation among the Company's
competitors and customers; -- technology advancements; -- the
failure of the Company's suppliers to timely deliver products in
accordance with contract specifications; -- changes in interest and
foreign exchange rates; -- changes in the Company's customer
relationships, including loss of particular business for
competitive or other reasons; -- the impact of reductions in the
insurance program covering the principal risks to the Company, and
other unanticipated events and conditions; -- volatility in raw
material and energy prices, including those of steel, petroleum
based products and natural gas and the unavailability of such raw
materials or energy sources; -- the inability to obtain and
maintain price increases to offset higher production or material
costs; -- increased competitive activity including actions by
larger competitors or low-cost producers; -- the inability to
recover the costs to develop and test new products or processes; --
the risks associated with doing business outside of the United
States; -- changes in pension expense and/or funding resulting from
investment performance of the Company's pension plan assets and
changes in discount rate, salary increase rate, and expected return
on plan assets assumptions, or changes to related accounting
regulations; -- government regulatory initiatives, including
regulations under the TREAD Act; -- the impact of labor problems,
including a strike brought against the Company or against one or
more of its large customers or suppliers; -- litigation brought
against the Company including products liability; -- an adverse
change in the Company's credit ratings, which could increase its
borrowing costs and/or hamper its access to the credit markets; --
changes to the credit markets and/or access to those markets; --
inaccurate assumptions used in developing the Company's strategic
plan or the inability or failure to successfully implement the
Company's strategic plan including closure of the Albany, Georgia
facility; -- inability to adequately protect the Company's
intellectual property rights; -- failure to successfully integrate
acquisitions into operations or their related financings may impact
liquidity and capital resources; -- inability to use deferred tax
assets; -- recent changes to tariffs on certain tires imported into
the United States from the People's Republic of China; -- and
changes in the Company's relationship with joint venture partners.
It is not possible to foresee or identify all such factors. Any
forward-looking statements in this report are based on certain
assumptions and analyses made by the Company in light of its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Prospective investors are
cautioned that any such statements are not a guarantee of future
performance and actual results or developments may differ
materially from those projected. The Company makes no commitment to
update any forward-looking statement included herein or to disclose
any facts, events or circumstances that may affect the accuracy of
any forward-looking statement. Further information covering issues
that could materially affect financial performance is contained in
the Company's periodic filings with the U. S. Securities and
Exchange Commission. (Statements of income and balance sheets
follow...) Cooper Tire & Rubber Company Consolidated Statements
of Income (Dollar amounts in thousands except per share amounts)
Quarter Ended Year Ended December 31 December 31 -------------
----------- 2008 2009 2008 2009 ---- ---- ---- ---- Net sales
$635,832 $773,059 $2,881,811 $2,778,990 Cost of products sold
645,589 645,278 2,805,638 2,359,963 ------- ------- ---------
--------- Gross profit (loss) (9,757) 127,781 76,173 419,027
Selling, general and administrative 46,256 55,162 185,064 206,990
Impairment of goodwill 31,340 - 31,340 - Restructuring charges
76,402 12,272 76,402 48,718 Settlement of retiree medical case - -
- 7,050 ------- ------ ------- ------- Operating profit (loss)
(163,755) 60,347 (216,633) 156,269 Interest expense (13,484)
(11,019) (50,525) (47,211) Debt extinguishment - - (593) - Interest
income 1,593 454 12,887 5,193 Dividend from unconsolidated
subsidiary - - 1,943 - Other income - net (7,128) 247 (4,854) 1,272
------ --- ------ ----- Income (loss) from continuing operations
before income taxes (182,774) 50,029 (257,775) 115,523 Income tax
benefit (expense) 28,327 (409) 30,274 (231) ------- ------ ------
------- Income (loss) from continuing operations (154,447) 49,620
(227,501) 115,292 Income (loss) from discontinued operations, net
of income taxes (16) 6,133 64 (31,653) ------- ----- ------ -------
Net income (loss) (154,463) 55,753 (227,437) 83,639 Net income
(loss) attributable to noncontrolling shareholders' interests
(11,009) 16,590 (8,057) 31,872 ------- ------ ------ ------ Net
income (loss) attributable to Cooper Tire & Rubber Company
$(143,454) $39,163 $(219,380) $51,767 ========= ======= =========
======= Basic earnings (loss) per share Income (loss) from
continuing operations attributable to Cooper Tire & Rubber
Company $(2.43) $0.55 $(3.72) $1.40 Income (loss) from discontinued
operations (0.00) 0.10 0.00 (0.53) ----- ---- ---- ----- Net income
(loss) attributable to Cooper Tire & Rubber Company $(2.44)*
$0.65 $(3.72) $0.87 Diluted earnings (loss) per share Income (loss)
from continuing operations attributable to Cooper Tire & Rubber
Company $(2.43) $0.53 $(3.72) $1.37 Income (loss) from discontinued
operations (0.00) 0.10 0.00 (0.52) ----- ---- ---- ----- Net income
(loss) attributable to Cooper Tire & Rubber Company $(2.44)*
$0.63 $(3.72) $0.85 Weighted average shares outstanding Basic
58,910 60,509 59,048 59,439 Diluted 58,910 62,419 59,048 60,681
Depreciation $34,918 $30,515 $138,805 $121,483 Amortization $319
$383 $3,954 $2,028 Capital expenditures $28,181 $15,355 $128,773
$79,333 Segment information Net sales North American Tire $510,766
$565,647 $2,142,139 $2,006,183 International Tire 175,577 273,604
975,007 993,839 Eliminations (50,511) (66,192) (235,335) (221,032)
Segment profit (loss) North American Tire (109,138) 39,008
(174,065) 110,957 International Tire (50,179) 26,468 (30,094)
72,753 Eliminations (1,443) (59) (1,330) (1,637) Unallocated
corporate charges (2,995) (5,070) (11,144) (25,804) CONSOLIDATED
BALANCE SHEETS December 31 ------------------------------- 2008
2009 ---- ---- Assets ------ Current assets: Cash and cash
equivalents $247,672 $426,981 Accounts receivable 318,109 367,023
Inventories 420,112 298,435 Other current assets 58,290 39,392
------ ------ Total current assets 1,044,183 1,131,831 Net
property, plant and equipment 901,274 850,971 Restricted cash 2,432
2,219 Intangibles and other assets 95,007 115,319 ------ -------
$2,042,896 $2,100,340 ========== ========== Liabilities and
Stockholders' Equity ------------------------------------ Current
liabilities: Notes payable $184,774 $156,719 Trade payables and
accrued liabilities 372,408 459,091 Income taxes 1,409 3,955
Liabilities of discontinued operations 1,182 1,061 Current portion
of long-term debt 147,761 15,515 ------- ------ Total current
liabilities 707,534 636,341 Long-term debt 325,749 330,971
Postretirement benefits other than pensions 236,025 244,905 Pension
benefits 268,773 272,050 Other long-term liabilities 115,803
145,978 Long-term liabilities of discontinued operations 8,046
6,043 Deferred income taxes - - Stockholders' equity 380,966
464,052 ------- ------- $2,042,896 $2,100,340 ========== ==========
* Amounts do not add due to rounding. DATASOURCE: Cooper Tire &
Rubber Company CONTACT: Curtis Schneekloth, +1-419-427-4768 Web
Site: http://www.coopertireandrubber.com/
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