Cooper Tyre & Rubber Co. has withdrawn its forecast for the third quarter due to lower-than-expected sales and high costs.
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In a press release cited by Dow Jones, the tyre company said soft industry demand in the North American tyre-replacement market crimped sales, while higher raw-material, energy and shipping and transportation and costs also hurt its bottom line.
As a result, Dow Jones added, the company no longer stands by its August 2 projection for a third-quarter profit of 10 to 14 cents a share, including losses of 8 cents a share due to the recent strike at it’s Texarkana site and 4 cents a share because of an unusual tax rate.
Dow Jones noted that analysts surveyed by Thomson First Call expect, on average, third-quarter earnings of 9 cents a share. The company earned 13 cents a share a year ago.
