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Local News

Friday, November 07, 2008

UPDATED: Cooper earnings slide $55 million
11/7/2008 4:03:57 PM
New Auto Show Feb. 12-14 -Findlay Village Mall
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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  LATEST COMMENTS Last 10 comments submitted by our readers...
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Jimbo wrote in article "Sheriff reminds motorists of road level advisories":
To Debbie..
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2/9/2010 10:35:28 AM
Steve wrote in article "Blowing snow stalls traffic":
unknown
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2/9/2010 9:56:48 AM
J wrote in article "Sheriff reminds motorists of road level advisories":
Citizen........
“ Findlay is located in Hancock County..... Therefore, yes. If Hancock Co goes into a level 3 that includes Findlay.... ” Read More...
2/9/2010 9:17:27 AM
Debbie wrote in article "Sheriff reminds motorists of road level advisories":
Level 3
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STEVE wrote in article "Sheriff reminds motorists of road level advisories":
LEVEL 3
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2/9/2010 8:55:52 AM
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2/9/2010 8:51:30 AM
Yvonne Hendricks wrote in article "Sheriff reminds motorists of road level advisories":
Level 3 Snow Emergencies
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llv wrote in article "Sheriff reminds motorists of road level advisories":
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Beltone Hearing Aids
News Briefs D.C. trip delayed
A trip to Washington, D.C. that Findlay and Ottawa officials were planning to make this week has been postponed because of the inclement weather.

Findlay Mayor Pete Sehnert said officials have rescheduled the trip for Feb. 23 to meet with a lobbying group and congressional representatives regarding federal spending on flood control projects.

Fostoria requires clearing sidewalks
FOSTORIA -- Fostoria residents are responsible for removing snow and ice from sidewalks within 12 hours of a storm, according to police Capt. Patrick Brooks.

The city code covers residential owners or tenants, and business owners of properties which abut a sidewalk.

An offense is a minor misdemeanor, with a fine of up to $100. Each day constitutes a separate offense.

Library in Forest reschedules event
FOREST -- Because of the expected inclement weather, the Forest-Jackson Public Library has rescheduled its Valentine luncheon planned for Thursday to 11:30 a.m. Thursday, Feb. 18.

Reservations are required. Anyone with questions can call the library at 419-273-2400.

Disc golf tourney set for Saturday
The Ray Heverling Charity Ice Bowl Tournament has been rescheduled for 1 p.m. Saturday at Riverbend Recreation Area, off Ohio 568 east of Findlay.

Registration begins at noon.

The tournament was canceled last Saturday because of a snowstorm.

The Disc Golf Community Association, in cooperation with the Hancock Park District, sponsors the event. Proceeds go to the Family Center of Findlay-Hancock County.

For more information contact Nathan Buck at p_nate@thecatalystcc.com or 419-306-7405. Entry fee is $20. Additional donations are accepted.

Housing Authority meeting postponed
Because of an expected winter storm this week, the Hancock Metropolitan Housing Authority has canceled its regular board meeting scheduled for Thursday. It will be held at 8 a.m. Thursday, Feb. 18 at the Family Center.

Fostoria library to close Monday
FOSTORIA -- Kaubisch Memorial Public Library will be closed Monday, Feb. 15, in observance of Presidents Day.

Crime Of The Week
Findlay/Hancock County Crime Stoppers is looking for information about a break-in at the Arlington Pharmacy, 200 Main St., at 12:51 a.m. Dec. 28.

A glass pane in the front door of the business was shattered, and entry was made. Once inside, the perpetrators took prescription medications and fled on foot.

Two white males were seen running from the business. The males were possibly in their late teens to early 20s, and possibly entered a vehicle.

People with information about this or any other crime that would lead to an arrest or indictment will be eligible for a cash reward of up to $1,000.

Crime Stoppers can be called weekdays from 8 a.m. to 4 p.m. at 419-425-TIPS or 419-425-8477. Callers can remain anonymous.

The Web site is www.hancockcrimestoppers.org.