Analysts Question Cooper’s Underlying Performance

In an analytical note entitled “When Will Nonrecurring Items Not Recur?” Deutsche Bank market watcher Rod Lache remarked he was disappointed with Cooper’s “underlying performance.” The manufacuturer’s recently published third quarter earnings per share results were, however, in line with estimations.

North American earnings improved $28 million year-on-year. But the analysts suggested that there are still problems with the company’s cost structure. The note stated: “While we believe that the inefficiencies being experienced by Cooper Tire may in fact be temporary, CTB must execute cost reductions, and management needs to specifically identify those improvements, before the market begins to buy into the sustainability of the company’s turnaround plan.”

As a result the analysts lowered their 2007 and 2008 earnings per share estimates for Cooper Tire to $1.24 and $1.73 from $1.30 and $2.09 respectively.