Cooper Tire & Rubber Company (CTB) posted a profit of $49.6 million or 53 cents per share in the fourth quarter of 2009, in sharp contrast to a loss of $2.43 per share in the same quarter a year ago. With this, the company has beaten the Zacks Consensus Estimate of 47 cents per share.
The improved results were attributable to lower raw material costs, increased volumes and higher utilization of manufacturing capacity, partially offset by unfavorable price and mix. Sales in the quarter rose 22% to $773 million. Operating profit was $60 million versus a loss of $164 million in the fourth quarter of 2008.
Segment Results
The North American Tire Operations generated sales of $566 million, 11% higher than the year-ago quarter. The U.S. Light vehicle tire shipments in the segment increased by 22%, outpacing the rise in total industry shipment by 7%. Operating profit for the quarter improved significantly to $39 million, compared with operating losses of $109 million in the same period in 2008.
The International Tire Operations reported sales of $274 million in the quarter, an increase of 56% from the fourth quarter of 2008. Sales volumes in the Asian operations rose 92%, while volumes in the European operations increased 6%. Operating profit for the segment was $26 million compared with an operating loss of $50 million during the fourth quarter of 2008.
Annual Results
For full-year 2009, Cooper Tire has recorded a profit of $115.3 million or $1.37 per share compared to a loss of $227.5 million or $3.72 per share in the previous year. However, the company has missed the Zacks Consensus Estimate of $1.88 per share. The company has generated sales of $2.8 billion, down 4% from 2008.
Financial Position
Cooper Tire had cash and cash equivalents of $427 million as of December 31, 2009, up from $248 million as of December 31, 2008. Long-term debt amounted to $340 million as of that date. The long-term debt-to-capitalization ratio stood at 42%.
Based on the improved results, Cooper Tire’s stock price went up 4.5% in late afternoon trading today.
Read the full analyst report on “CTB”
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