FINDLAY, Ohio – While Cooper Tire & Rubber Co.’s earnings for the fourth quarter and for all of 2013 were lower compared to a year earlier, the results beat analysts’ estimates.
The company also said the impact of its failed merger with India-based Apollo Tyre lessened in the fourth quarter, compared to the third quarter.
That failed merger included a $27 million hit in the quarter from a labor stoppage in China at its joint-venture plant that occurred in the summer, $9 million in other merger costs, $10 million in “unfavorable” manufacturing costs and $11 million in production cutbacks.
On Friday, Cooper said it earned $19.6 million, or 31 cents a share, in the fourth quarter, compared to $72.9 million, or $1.15 a share, a year earlier. Sales in the quarter were $861 million, compared to $1.1 billion in 2012. Analysts had expected Cooper to earn 26 cents a share on sales of $775 million.
For the full year, Cooper earned $111 million, or $1.73 a share, on revenue of $3.4 billion. In 2012, the company earned $220 million, or $3.49 a share, on sales of $4.2 billion
Cooper’s North American Tire Operations saw sales fall 23 percent in the fourth quarter, from $811 in 2012 to $628 million. Sales for the region for the year declined by $600 million, to $2.5 billion. Operating profit for the year dropped $92 million, to $204 million.
“We look forward to moving ahead in 2014,” said Cooper Chairman and CEO Roy Armes. “The challenges of 2013 are largely behind us. Overall, we believe Cooper will begin to recover unit volumes this year and grow volumes at a rate equal to or higher than the industry in key markets. This will allow us to continue to effectively leverage our flexible global manufacturing and distribution footprint to deliver on our strategic plan objectives, which focus on driving stockholder value as a top priority.”