UPDATE: Cooper Tire & Rubber Posts Downbeat Q4 Earnings, Beats Revenue Estimates

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Cooper Tire & Rubber Co.
CTB
reported weaker-than-expected earnings for the fourth quarter. However, the company's revenue exceeded estimates. The Findlay, Ohio-based company posted a quarterly profit of $82.3 million, or $1.39 per share, versus a year-ago profit of $20 million, or $0.31 per share. Excluding the gain on the joint venture interest sale, the company earned $0.45 per share. Its net sales declined 5% to $820 million. However, analysts were expecting earnings of $0.64 per share on revenue of $804 million. Net sales from Cooper Tire's international tire operations slipped to $191 million from $283 million, while sales for North America tire operations gained 10% to $ $689 million. Operating profit climbed to $54 million from $47 million, while operating margin widened to 6.5% from 5.5%. Cooper Tire also announced a $200 million share repurchase program. "In 2015, we expect the tire markets to continue to grow modestly in North America. In the Americas segment, while the early part of this year is likely to be negatively impacted by the pre-buying we saw ahead of the tariff announcements, we expect to continue our strong performance for the full year. In Asia, the tire market is growing at high single-digit rates. We are looking to invest in Asia to expand our business after the sale of CCT. Until that time, we will see the impact of a higher cost structure on our operating profit. In Western Europe markets have softened, and we expect continued volatility in Russia and Eastern Europe," Cooper Tire shares gained 1.75% to $38.37 in pre-market trading.
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Posted In: EarningsNewsprofit
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