Retail

Cooper gets ready to report a black 4Q

Posted on March 4, 2014

Cooper Tire & Rubber Co. released its third-quarter 2013 results on February 28. Despite a $168,000 loss attributable to the company, Cooper will report positive net income for the fourth quarter, according to Chairman, CEO and President Roy Armes.

Issues surrounding the failed "merger" with Apollo Tyres Ltd. had a significant negative impact on 3Q results, "and we anticipate some carryover of these negative impacts to a lesser degree in the near term,” he said. “Still, our business model remains resilient and we will report positive operating profit and net income for the fourth quarter and second half of 2013."

Through the first three quarters of fiscal 2013, Cooper posted net income of $91.4 million on net sales of nearly $2.6 billion. That compared to income of $147.4 million on sales of more than $3.1 billion for the same period last year.

Based on Armes' comments, Cooper will record net income of more than $91.5 million for fiscal 2013. As for net sales, they were down 24% in the third quarter compared to the same period last year. He said negative impact from the failed merger would carryover in the fourth quarter "to a lesser degree."

In the fourth quarter of 2012, Cooper recorded net sales of close to $1.1 billion. Modern Tire Dealer estimates the company will finish the year with nearly $3.5 billion in sales. That will make the company's income-to-sales ratio no worse than 2.6%.

Industry analyst Nick Mitchell, senior vice president of research for Northcoast Reseach Partners LLC, says Cooper's 3Q revenue, operating income and earnings per share fell well short of his firm's outlook and consensus estimates. (For more information on Cooper's 3Q 2013 financial results, click "Cooper reports 3Q loss.")

"While the strong sell-out trends in the replacement tire market in the U.S. during 4Q '13 likely provided an uptick in order trends for all manufacturers, including Cooper, we are maintaining our "Neutral" rating on the company's shares," he says. "We think the deterioration in the company's fundamentals over the past 12 months, including the price investments and steep market share losses in North America, will take longer to reverse than the market expects."

Cooper is expected to report its 4Q results later this month.

Related Topics: Cooper financials, Nick Mitchell, Northcoast Research, Roy Armes

Comments ( 0 )
More Stories
Article

You’ve Got Email: It’s Still the Way to Go to Market, Digitally Speaking

Remember email? Sometimes in the communication that is texting, tweeting or ‘Snapchatting,’ email is taken for granted. Facebook is great for sharing your thoughts and feelings to everyone you have friended, but email is more targeted, especially when used for business. You might say it is even more personal than Facebook because it is designed for interaction between two people or among a small group of people.

Drew Howlett from Falken says developing the right M/T tire is critical. “There are too many other competitive products on the market to have any weaknesses.”
Article

M/T Tires are Having a Moment: Consumer Demand Is Blurring the Lines

There are off-road warriors who never let their vehicles or mud-terrain tires touch pavement. There are others who like to occasionally play in the dirt, but need their fun vehicles to do double duty to go to work or school. And increasingly, there are drivers with lifted trucks and mean-looking tires who chase the aesthetic more than the lifestyle their vehicle portrays.

The sales staff at Ron's Tire & Motorsports is cross-trained to sell every product, from tires to bicycles to lawnmowers to barbecue grills.
News

Ron's Tire Sells Tires, And Much, Much More

Here’s the first hint that the newest tire store Ron Baxter and Ross Baxter are opening in Idaho Falls, Idaho, isn’t a typical retail store: the size. It’s 37,000 square feet.  

News

Tireco's Milestar Brand Launches Responsive Website

Tireco Inc.'s new mobile responsive website for Milestar tires is designed to showcase updated news, features and available tire sizes while serving as a hub for consumers to interact with the Milestar brand.

Kenda newcomer Chris Tolbert will help expand the Traction Dealer Network.
News

Chris Tolbert Joins Kenda USA

Tire industry veteran Chris Tolbert has joined Kenda USA's North American Automotive Business team as director of business development. His assignment: help accelerate Kenda’s sales and brand awareness in the PCR and LTR segments.

The new Gabriel training menu is divided into two sections, one for light vehicle training and one for heavy-duty training. Both sections include a series of training videos for dealers and installers to better sell and install Gabriel shocks and struts.
News

Gabriel Website Offers Training Resources

Ride Control LLC has launched its Gabriel website training menu with a series of training options as an expansion of its Answerman technical service offerings. This includes videos, technical bulletins, online catalogs and FAQs for both light and heavy-duty vehicles.

News

Hankook Suffers Sales Slowdown in 2Q 2017

Hankook Tire Co. Ltd. posted income before taxes of 3.1 trillion won on net sales of nearly 17.3 trillion won for the second period ended June 30, 2017. That compares to income of 2 trillion won on sales of 16.4 trillion won for the same period in fiscal 2016.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!