Tire Business staff report
Findlay, Ohio -- Cooper Tire & Rubber Co. is estimating first quarter results to be â€œconsiderably below expectations,â€ citing a challenging economy as the problem.
The Findlay-based tyre manufacturer, which will make its first quarter results public May 7, specified a number of factors contributing to its prediction for a quarter of â€œmodest earnings,â€ including increases in energy costs and product liability claims as well as declining unit shipments in North America.
Cooper CEO Roy Armes said the company will increase its â€œfocus on delivering cost improvements during 2008 with the many initiatives (it already has) in place.â€
â€œThese efforts, seasonal volume increases, very good order patterns in specific profitable tyre lines, sequential improvements in plant operations and success in implementing price increases provide support for our belief that results will be appreciably more favorable as the economy improves,â€ he said.
A year ago Cooper reported net income of $21 million on sales of $689 million, or a 3-percent earnings ratio.
From Tire Business (A Crain publication)
Press release from Cooper