FINDLAY - Cooper Tire & Rubber Co. reported a profit yesterday, reversing five straight quarterly losses, and also posted higher sales in the third quarter.
The Findlay replacement-tire maker said lower raw materials costs and improved manufacturing contributed to its performance.
Its profit for the quarter was $47 million, or 77 cents a share, compared with a loss of $55.4 million, or 94 cents a share, during the same period a year ago. The company said it had quarterly sales of $803 million, up by $9 million from a year ago.
"Raw materials generated greater-than-expected savings," said Himanshu Patel, a New York analyst with JPMorgan Chase & Co. in a note obtained by Bloomberg News Service.
Cooper Tire's shares rose 86 cents, or nearly 6 percent, to $16.12 yesterday. The stock price has more than doubled this year.
The company's "greatest concern" in coming months is the volatility of raw material prices, Chief Executive Officer Roy Armes said in the statement.The company has done selective price increases on its tires to help the bottom line, he said. The northwest Ohio firm also stopped production in the latest quarter at its Georgia plant as it said it would do, taking a $13 million restructuring charge.
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