Cooper Tire (CTB) Misses Q1 EPS by 12c

Cooper Tire (NYSE: CTB) reported Q1 EPS of $0.57, $0.12 worse than the analyst estimate of $0.69. Revenue for the quarter came in at $643.03 million versus the consensus estimate of $687.92 million.

"As anticipated, the first quarter was impacted by a dramatic increase in raw material costs. For Cooper, which is on the LIFO accounting method in the U.S., increased raw material costs reduced profits by $50 million, which was partially offset by price and mix improvements of $8 million. In addition, U.S. unit sales volume was down as a result of the timing of price increases and aggressive promotional activity by competitors, as well as overall weaker industry sell-out volumes. We incurred higher manufacturing costs in North America as we managed our inventory levels by reducing production. On the positive side, our U.S. TBR volume was up 32 percent, Latin America region unit volume was up nearly 16 percent, and International segment volume was up 31 percent. Combined, global unit volume increased nearly 3 percent year over year, and we generated a 16.6 percent return on invested capital for the trailing four quarters. We believe Cooper is well positioned as we head into the remainder of 2017,” said Cooper President & Chief Executive Officer Brad Hughes.

For earnings history and earnings-related data on Cooper Tire (CTB) click here.

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