UPDATE: Cooper Tire Shares Surge On Upbeat Results

Shares of Cooper Tire & Rubber Company

gained more than 3% in pre-market trading after the company posted a better-than-expected profit in its third quarter. The Findlay, Ohio-based company posted a quarterly profit of $47.7 million, or $0.77 per share, versus a year-ago loss of $168,000, or $0.00 per share. Its net sales climbed 10.5% to $920.1 million. However, analysts were expecting earnings of $0.72 per share on revenue of $912.13 million. Net sales from its international tire operations climbed 19% to $313 million. Net sales from North America tire operations gained 9.6% to $694 million, while shipments rose 11% on the year. Operating profit surged to $89 million from $28 million, while operating margin widened to 9.7% from 3.4%. Its selling, general and administrative expenses declined 2.4% to $67.8 million in the quarter. Raw material prices during the quarter slipped 2% versus the second quarter. The company projects raw material prices to be down slightly in the fourth quarter from the third quarter. Cooper Tire also expects 2014 capital expenditures to be between $175 million and $185 million. At the end of the third quarter, the company had $336 million in cash and cash equivalents, versus $310 million at September 30, 2013. “Our third quarter performance continued the solid trends we saw during the first half. Even after adjusting for the unusual issues last year, we had strong unit volume growth, particularly in the Americas segment,” said Roy Armes, Cooper's Chairman, Chief Executive Officer, and President. Cooper Tire shares gained 3.38% to $34.25 in pre-market trading.