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Local News

Friday, November 07, 2008

UPDATED: Cooper earnings slide $55 million
11/7/2008 4:03:57 PM
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
   NEWS VIDEO

Benton Ridge Shooting

This video, released by the Hancock County Prosecutor's Office, shows the shooting of a Lima man who led authorities on a three-county chase ending Aug.24 in Benton Ridge. Be cautioned, the video contains graphic content.
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  LATEST COMMENTS Last 10 comments submitted by our readers...
Dave wrote in article "Shooting video released":
Suspect chose the outcome
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speaking the truth
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9/2/2010 12:39:40 PM
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drugs
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9/2/2010 12:08:35 PM
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benton ridge shooting
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DRUG BUST
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News Briefs Firefighters discover 20 marijuana plants in house
After fighting a house fire early Monday at 815 Howard St., firefighters found 20 marijuana plants in the residence.

"They ran across it and called us," said police Sgt. Justin Hendren with the Hancock County METRICH Drug Enforcement Unit.

Police seized all 20 plants, and Hendren said charges are pending.

High-powered growing lights, fans, and a box filled with dried marijuana were also found in the house, according to a police report.

Investigators said an electrical short started the fire before 3 a.m. Monday.

The blaze caused an estimated $12,000 in damage to the residence, owned by Amanda Crawford. No one was injured, according to the Findlay Fire Department.

Carey announces holiday closing
CAREY -- Carey offices, including administrative, income tax and utilities, electric, wastewater treatment plant, and public works, will be closed Monday in observance of Labor Day.

The curbside recycling program will be held Tuesday through Thursday, Sept. 7-9.

Findlay trooper named sergeant
Trooper Jacob L. Fletcher, assigned to the Findlay post of the State Highway Patrol, was promoted to sergeant Wednesday by Patrol Superintendent Col. David Dicken.

With the promotion, Fletcher will stay at the Findlay post and serve as an assistant post commander, according to the patrol.

Fletcher began his patrol career in 2002 after graduating from the 139th Academy class and has been assigned to the Findlay post since.

Owens announces holiday schedule
The Toledo and Findlay campuses of Owens Community College will be closed Saturday through Monday for the Labor Day holiday.

There will be no classes and the college offices will be closed.

Classes will resume and offices will open again on Tuesday.

Holiday changes ad deadlines
The Courier won't be published on Monday, in observance of the Labor Day holiday.

Because of the holiday, some advertising deadlines have been moved up this week:

Black and white display advertising for Tuesday's newspaper must be placed by noon Friday. Display advertising for Wednesday's newspaper must be placed by 2:30 p.m. Friday.

Color display advertising for the Thursday, Sept. 9 newspaper must be placed by Friday.

Classified advertising and City and Country advertising for Saturday's newspaper must be placed by 2 p.m. Friday. Classified ads for Tuesday's newspaper must be placed by 2:30 p.m. Friday.

Courier business and advertising offices will close at 3 p.m. Friday for the holiday.