Cooper blames Chinese partner for earnings delay
Cooper Tire & Rubber Co. has notified the U.S. Securities and Exchange Commission (SEC) that its third-quarter earnings report will be delayed. The company blamed the delay on a dispute with its Chinese joint venture partner in its Nov. 12, 2013, SEC filing.
In the filing, Cooper said following the announcement of its merger agreement with Apollo Tyres Ltd., production employees at its joint venture, Cooper Chengshan (Shandong) Tire Company Ltd., in Rongcheng, China, went on strike demanding termination of the merger.
“On Aug. 17, 2013, those employees returned to work on a limited basis to manufacture only non-Cooper branded products, but have taken other disruptive actions, including denying access to certain representatives of the company and withholding certain business and financial information,” Cooper said in the SEC filing.
“As of Nov. 12, 2013, the company has not been able to obtain this business and financial information from the joint venture in a sufficient manner to complete the Form 10-Q for the quarter ended Sept.30, 2013.
“The company is currently evaluating its options for resolving this matter. Until it obtains satisfactory information from the joint venture, the company will not be able to file the Form 10-Q. The company expects to file the Form 10-Q as soon as practicable after the information is obtained.”
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