Cooper Tire Posts 3Q Profit, Shares Rise

FINDLAY, Ohio (AP) — 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.