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Local News

Friday, November 07, 2008

UPDATED: Cooper earnings slide $55 million
11/7/2008 4:03:57 PM
Home Savings and Loan Co.
By LOU WILIN

STAFF WRITER

Losses deepened at Cooper Tire & Rubber Co. in the third quarter with fewer tires sold, higher costs for raw materials and utilities, and hurricane-caused production interruptions.

It was the second consecutive quarter the company suffered a net loss.

Cooper lost $55 million from July through September, or 94 cents per share, compared with a profit of $30 million, or 48 cents per share a year earlier.

Cooper lost $22 million in the April through June quarter this year.

The numbers agree with Cooper's deliberations over whether to close one of its four plants in the United States.

“Our business has come under intense pressure from several fronts including increased raw material costs, decreased global demand and more intense competition,” Cooper Chief Executive Officer Roy Armes said.

Operations in North America lost $51 million last quarter, compared with $26 million income a year earlier. That was despite four tire price increases in the past 1½ year.

In contrast, operations in Europe and Asia generated $7 million income last quarter.

Demand in North America fell with consumer confidence in response to the credit crisis and increased gasoline prices. Cooper sold 14 percent fewer tires in the United States, the company reported.

The number of tires sold for passenger cars was down 15-20 percent in October from a year earlier, Armes said. The numbers of tires sold for light trucks was down by more than 20 percent last month from October 2007.

Cooper's costs to buy rubber and oil-derived tire ingredients grew by 42 percent from a year earlier and by about 20 percent from the previous quarter.

Cooper is trying to transition to building more high-end tires, which allowed Goodyear Tire & Rubber to partially sidestep the tire industry slowdown, Dow Jones International News reported. Goodyear sells fewer tires, but can charge more for the higher-end brands, drawing greater profit margins.

Cooper looks to have a rough ride for a while. Tire demand is expected to languish into 2009 with consumers reacting to the weakening economy and delaying replacement tire purchases, Armes said.

Elevated costs also will likely pressure Cooper's profit margins for a while.

Wilin: 419-427-8413 Send an e-mail to Lou Wilin
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2 Comments

Latest comments listed first.
Critical Thinker wrote:
Cooper will move out of Findlay
“ The numbers are in and Cooper has two long term choices: 1) be acquired by someone like Bridgestone/Firestone for the replacement tire market (and close all Cooper production plants) or 2) close all Cooper production plants and be a virtual company importing tires with the Cooper label where they can be made cheaper like China. Either way, the Cooper manufacturing plant will all close and there's only a 25% chance that any Cooper salaried employees will remain in Findlay. This is globalization and the writing is on the wall. My advice to Cooper employees - retire or find another job while you have time to try and make a smoother transition. Don't hope for Cooper to continue because it's not going to happen except maybe for the next 5 years at best. Sorry, but it's best to know ahead of time so you can plan for the future. ”
Saturday, November 08, 2008 12:10:32 AM
ONLINE EDITOR wrote:
Comments
“ Comments posted under fake e-mail accounts will not be posted. "Critical Thinker" is encouraged to provide a viable e-mail address. ”
Friday, November 07, 2008 1:37:39 PM
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News Briefs Work scheduled on Findlay streets
Findlay's Main Street, northbound, will be reduced at times to one lane between 8 a.m. and 5 p.m. for waterline connection.

Main Street will not be accessible from East Lincoln Street. Lincoln Street will be closed to through traffic from South Main Street to South Blanchard Street from 8 a.m. to 5 p.m. for continued improvement work. Access to local businesses and residents only will be maintained.

Recount planned in trustee's race
OTTAWA -- After certifying election results on Wednesday, the Putnam County Board of Elections has announced a recount will be required for the Union Township trustee race, according to Deputy Director Shelly Burkhart.

The recount will be completed on Wednesday at the county elections board office, 336 E. Main Street, Ottawa.

Incumbent Daniel R. Ellerbrock has secured his position on the board, earning 685 votes. However the remaining trustee spot will require a recount as Gery P. Wurth earned 598 votes and Mark J. Kahle collected 601 votes, according to official results.

An automatic recount is necessary if the margin is within one-half of 1 percent of total votes cast, according to state law.

Road to be closed
Forest Lake Drive, between Marion Township 237 and Indian Lake Drive/Forest Lane, will be closed today for a pipe installation.

The road is expected to open by 5 p.m., weather permitting.

Motorists are advised to use Township 242.