FINDLAY, Ohio – Cooper Tire & Rubber Co. said Monday it earned $46.8 million in the third quarter, citing lower raw material costs than a year ago, manufacturing improvements and higher sales volumes. Its shares rose more than 9 percent by late morning.
Cooper said that while raw material prices have escalated in recent months, the company doesn’t expect a return to the high levels of 2008. Cooper said its operating results will be significantly affected by its ability to hold or increase prices.
As a result of the U.S. government’s implementation of higher tariffs on tires imported from China, Cooper said it has put in place selective price increases and is making sourcing changes to limit the effects of the decision.
On the downside, Cooper said its third-quarter results were partially offset by unfavorable price and mix. In addition, the company said it ended production at its facility in Albany, Ga., during the quarter resulting in restructuring costs of $13 million, or 22 cents per share.
Cooper’s profit amounted to 79 cents per share and compared with a loss of $55.4 million, or 94 cents per share, in the year-ago period.
Excluding discontinued operations, the company posted a profit of 77 cents per share for the recent quarter. Analysts polled by Thomson Reuters expected a profit of 66 cents per share.
Sales rose 1.1 percent to $802.8 million from $793.8 million, as volumes increased slightly.
Its shares rose $1.44, or 9.4 percent, to $16.70 in morning trading after peaking at $17.40 earlier in the day. Its shares have traded in a 52-week range of $2.96 to $18.88.
The Associated Press