USA: Vehicle components drag down Cooper Tyre and Rubber quarterly profit - report
Cooper Tyre & Rubber Co. on Thursday that said its quarterly earnings fell as profit from its automotive components business declined, Reuters reported.
But the company said it sees improving conditions for tyres, and expects fourth-quarter earnings between 40 cents and 45 cents a share. Analysts' estimates ranged from 29 cents to 42 cents, with an average estimate of 35 cents, according to Reuters Research, a unit of Reuters Group Plc.
Third-quarter net income slipped to $US18.0 million, or 24 cents a share, from $23.3 million, or 31 cents, a year ago, Reuters reported, adding that, excluding restructuring expenses of $5 million, or 5 cents per share, in the most recent period, Cooper Tyre would have earned 29 cents a share.
Sales rose to $913.2 million from $839.3 million a year ago, the report added.
According to Reuters, Cooper said its tyre division did well during the quarter, gaining market share in nearly every category of light vehicle tyres. Tyre sales increased 13% to $526 million in the quarter, with the segment's operating profit up 26% to $34 million, the report said.
At its Cooper-Standard Automotive division, sales rose 2.9% to $392 million but operating profit dropped to $10.7 million from $27.4 million on lower production volume, pricing concessions and higher scrap rates in its sealing operations, Reuters said.