Cooper Tire (CTB) Q1 Earnings & Revenues Miss Estimates
Zacks Investment Research | Apr 27, 2017 10:32PM ET
Cooper Tire & Rubber Co. (NYSE:CTB) recorded earnings of 57 cents per share in the first quarter of 2017, which missed Zacks Consensus Estimate of 69 cents. Net income came in at $31 million compared with $59 million in the first quarter of 2016.
Cooper Tire’s revenues decreased 1% to $643 million in this quarter from the year-ago figure of $650 million. The figure also missed Zacks Consensus Estimate of $687.9 million.
Operating profit was $49 million (7.6% of sales) in the first quarter of 2017 compared with $91 million (14% of sales) a year ago. Operating profit was negatively impacted by unit volume decline in North America, as well as volatile raw material costs and product pricing environment. This decrease was partly offset by unit volume increase in the International segment and Latin America.
The company’s shares lost 9.8% to close at $39.15 on Apr 27, reflecting worse-than-expected first-quarter results.
Segment Details
Americas Tire Operations recorded an 8.3% decrease in revenues to $531 million due to lower unit volume, adverse impact of foreign currency translations and unfavorable price and mix. Operating profit in this segment declined 40.4% to $63 million, while operating margin fell from 18.3% to 11.9%. Operating profits declined due to higher raw material costs, manufacturing costs, unfavorable price and mix as well as higher other costs, partially offset by improvement in tariff reversal and lower SG&A costs.
International Tire Operations reported a 37.5% rise in revenues to $142 million, mainly due to higher unit volume as well as favorable price and mix, partially offset by a negative foreign currency impact. Operating profit came in at $2 million against an operating loss of $2 million a year ago. The improvement was backed by higher volumes as well as favorable manufacturing and other costs, which was partly offset by higher SG&A expense and negative foreign currency translation.
Cooper Tire & Rubber Company Price, Consensus and EPS Surprise
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