Cooper Tire & Rubber Co.'s (CTB) third-quarter earnings fell
4.8% as higher costs for raw materials more than offset higher
prices and revenue in the quarter.
However, the profit beat analysts' expectations.
Tire demand has been recovering since the second half of last
year after a sharp downturn, though tire volume remains far below
levels seen in 2007. While Cooper has benefited from prior cost
cutting, higher raw-material costs have been pressuring
margins.
Cooper reported earnings of $44.6 million, or 71 cents a share,
down from $46.8 million, or 84 cents a share, a year earlier. The
results include restructuring charges of $4.8 million and $13.4
million, respectively. Revenue increased 10% to $882.9 million.
Analysts polled by Thomson Reuters most recently forecast
earnings of 60 cents on revenue of $895 million.
Gross margin fell to 14.5% from 17.5% amid the higher
raw-materials costs.
The company's North American tire segment recorded earnings
growth of 15% while revenue improved 13% as higher prices more than
offset lower volume. International revenue rose 9.6%, also despite
lower volume, while profit dropped 31% amid higher raw-materials
costs.
Shares closed Friday at $19.61 and were inactive premarket. The
stock is up 29% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;