Cooper Tire & Rubber 4Q Profit Edges Higher
Cooper Tire & Rubber (NYSE:CTB) revealed on Friday a narrowly improved fourth-quarter profit, though high raw material and restructuring costs pushed its results below Wall Street estimates.
The Findlay, Ohio-based company posted net income of $40 million, or 64 cents a share, compared with $39 million, or 53 cents a share, in the same quarter last year and below average analyst estimates polled by Thomson Reuters of 66 cents.
The earnings were hit by a $1 million restructuring charge related to the closure of its facility in Georgia, an increase in raw material prices, and higher product liability charges, partially offset by improved price and mix, and higher volumes.
“We were able to deliver positive results during the fourth quarter despite the beginnings of rapid increases in raw material costs, particularly natural rubber,” Cooper Tire CEO Roy Armes said in a statement. “Demand for our products continued to be very strong and we were able to run the manufacturing facilities efficiently to deliver improved manufacturing results.”
Revenue for the maker of replacement tires was $919.6 million, up 19% from $773 million a year ago, beating the Street’s view of $850.5 million.
Sales in its North America tire operations edged 18% higher, while international operations hit a record high of $341 million, led by its Asian and European divisions.