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Cooper Tire’s Upbeat Outlook

Cooper Tire’s management is convinced that it can achieve a dramatic margin improvement. That’ the verdict Deutche Bank analysts gave after meeting with company’s top brass. Having said that, the report says the company is also realistic, not claiming to be able to achieve this overnight. According to the analysts’ report, the company doesn’t expect to achieve its 10 per cent target margin until after 2006, possibly 2007. In the second half of 2005, the analysts predict a “compelling trajectory” culminating in a 6-8 per cent EBIT margin in 2006. Furthermore, up to two margin points could be achieved by reducing scrap and plant inefficiencies. Pricing is likely to continue to rise, and eventually exceed raw material cost increases (potentially responsible for between 1.5 and 3 points of margin). the analysts add.

10th March 2005/by Tyrepress Editors

‘Movement’ in Union Talks

Talks between Cooper Tire & Rubber Co and the United Steelworkers of America (USWA) Local 752 for a new contract covering Cooper’s Texarkana, Arkansas, tyre plant are continuing. Tire Review has reported that both sides agreed to extend terms of the previous contract, which expired last week, at least until midnight on 12 March. Local 752 president David Boone told the Texarkana Gazette that the extension would hopefully give both sides time to reach a deal. “Both sides felt there is some movement,” Boone told the newspaper. “But we felt we didn’t have enough time to get there until Saturday midnight.” Healthcare costs and retiree benefits were the two main issues being discussed, he said.

10th March 2005/by Tyrepress Editors

Cooper Promotes Marketing Executives

Cooper Tire & Rubber Co. has made a number of new appointments, including the promotion of Ed Reading to vice president of international sales and marketing, writes Tire Review. In his new role, Mr Reading will be responsible for coordinating sales and marketing strategies for all Cooper products sold outside the US, as well as export sales from the US.

In addition, Cooper named Matthew Moore as manager of programme pricing. Mr Moore will be responsible for determining prices on Cooper tyre brands. Finally, Chris Barbara was named sales training manager, and will be responsible for developing and facilitating training for Cooper’s dealers and sales force.

9th March 2005/by Tyrepress Editors

Bridgestone Replaces Avon as GP2 Supplier

Bridgestone recently took over as the sole tyre supplier of the GP2 motorsport series. Already a supplier to Formula 1, the Japanese company has decided to become the sole supplier of GP2 which has replace F3000 as the primary support series for F1. Previously Cooper’s Avon brand was the GP2 series supplier.

8th March 2005/by Tyrepress Editors

Datillo: Cooper Paid $107 million for Kumho Share

In an exclusive interview with Tire Review last week, Tom Dattilo, chairman, president and CEO of Cooper Tire & Rubber, said the tyre manufacturer ended up paying “about $107 million” for its 11 per cent stake in Kumho Tire Co.

Cooper purchased the stock during Kumho’s dual initial public offerings on the London and Seoul exchanges earlier this year. “That was our 11 per cent stake. I saw a set of figures last week that put it at about $110 million, and we had expected it to come in at the low to mid $140s. A couple of analysts were speculating $140, 150, $160 million, but that was all part of the process of trying to get as high a price as they could,” Mr Dattilo told the magazine.

2nd March 2005/by Tyrepress Editors

Cooper’s Results ‘Disappointing’

Cooper Tire’s fourth quarter 2004 results disappointed analysts, according to a Deutsche Bank report. For them, the “major disappointment” was volume, which decline 6 per cent year-on-year. Cooper also registered earnings per share of $0.04, less than half analysts’ estimate. As a result the bank cut its 2005 earnings per share estimate from $1.45 to $0.75. They also cut their 2006 estimate from $2.45 to $1.25. In spite of these criticisms, the analysts also noted that the result were not necessarily reflective of “normal” profitability. “We find it encouraging that CTB’s order fill rates are in the low 80 per cent range, which implies that demand is outstripping supply.”

17th February 2005/by Tyrepress Editors

Cooper Reports Net Sales Increase and Income Drop

Cooper Tire & Rubber has reported a 5 per cent year-over-year increase in net sales, a fourth quarter record for the company’s tyre operations. At the same time the board of directors authorised the repurchase of up to $200 million of the company’s publicly traded notes. This will be done through open market transactions, a tender offer or a combination of the two. Total net sales for the company’s continuing operations increased to $541 million in the quarter ended 31 December 2004, compared to $515 million in the same period of 2003. Income from continuing operations dipped significantly in the quarter to $3 million (4 cents per share) from $8 million (10 cents per share) in the fourth quarter of 2003.

16th February 2005/by Tyrepress Editors

Cooper Announces Three New Appointments

Cooper Tire and Rubber has announced the appointment of three new managers. Dustin R Lepper has been named as manager of management education for The Cooper Learning Center, where he will facilitate training courses for the company and oversee other activities within the college of management education. Curt L Cramer has been appointed as territory sales manager, serving existing customers in the Northeast region as well as developing new business opportunities in this area of the country. Mr Cramer began his Cooper career in information technology eight years ago, and most recently served as a customer service coordinator. Clay S Lewis will become composite materials development manager, with responsibility for development of materials and compounds in the reinforcing components of tyres. Since joining Cooper as an trainee engineer in 1990, Lewis has worked as associate engineer, process engineer, tyre engineer and most recently as advanced manufacturing engineer.

4th February 2005/by Tyrepress Editors

Kumho Tire Raises $363 Million in IPO

Kumho Tire, South Korea’s second-largest tyre maker, raised 373 billion won (around £193 million) in its recent IPO, according to the Reuters news agency. The total equates to the country’s largest issue in more than six months, the report added.

Kumho, which controls 42 per cent of the home tyre market, is selling 25.49 million shares at 14,650 won each, near the midpoint of an expected range between 13,250 won to 16,000 won, a source familiar with the deal said. The world’s 11th-largest tyre maker, will use the proceeds to expand its operations in China and slash debt. The dual listing in London and Seoul attracted good demand while Cooper Tire & Rubber Co. of the United States pledged to buy nearly 30 per cent of the shares offered, the report concluded.

4th February 2005/by Tyrepress Editors

Rating Agency Reviews Cooper’s Debt Rating

Moody’s Investors Service is reviewing and may downgrade the debt rating for Findlay’s Cooper Tire & Rubber Co, the rating agency has said. Cooper Tire officials told Moody’s they expect to use $100 million to $200 million of proceeds from the nearly $1.2 billion sale of Cooper-Standard to reduce debt, the agency said. Other proceeds will be used for a “significant amount of stock repurchases.” However, the $100 million to $200 million amount would not lower debt enough, and repurchasing shares would increase financial risk, according to Moody’s.

2nd February 2005/by Tyrepress Editors

Kumho Sets IPO Prices

Kumho will launch initial public offerings (IPO) on both the South Korean and London stock exchanges at $15.58 per share, South Korea’s Dow Jones has reported. The tyre manufacturer expects to raise approximately $400 million (£210 million) in the sale. Kumho Tire Co. is said to be selling some 25 million shares in the simultaneous IPO. “A heavy flood of orders is expected to be placed before the offer close,” Dow Jones reported.

The news follows Cooper Tire & Rubber’s early January announcement that it would buy an 11 per cent share of the company, which amounts to 7.5 million shares.

1st February 2005/by Tyrepress Editors

Avon Unleashes the Viper

“The new tyre range represents a major advance in sports tyre design and is the result of years of testing combined with original and innovative engineering concepts. We are proud to deliver this three-tier offering of 19 sizes to the motorcycle market and have great confidence that it will be enthusiastically received” – Avon’s motorcycle product manager, Pete McNally, can only be that enthusiastic about one thing – the Viper has finally been unleashed.

27th January 2005/by Tyrepress Editors

The Pro Comp Range Reaches British Isles

Although US produced Pro Comp tyres have a good reputation in the states, they are not so well known in the UK. That’s why Midlands based 4×4 distributor, John Craddock Ltd, jumped at the chance to become the brand’s sole importer for the UK & Ireland. Tyres & Accessories spoke to marketing manager, Jamie Stevens.

26th January 2005/by Tyrepress Editors

Cooper Analysis Positive

According to Deutsche Bank, Cooper Tire’s (CTB) management “sounded pretty optimistic on CTB’s growth prospects for 2005,” at a recent analyst conference.

Company representatives remain positive about industry pricing, reports the German news source, with Cooper rolling out new price increases of up to four per cent in March. New contracts that have recently been secured should also encourage 2.5 per cent growth, say analysts.

14th January 2005/by Tyrepress Editors

US Tyre Shipments Beat Expectations

Financial analysts are predicting that the US tyre market has performed better than expected in the month of December, increasing 9.5 per cent year-over-year. The news follows a six per cent increase in November and an 8 per cent decline in October. The market watchers from Deutsche Bank estimate that US tyre manufacturers are likely to have experienced a 2.5 per cent increase in replacement volume. In addition the analysts report that volumes this quarter are also better than expected. As a result Deutsche Bank predicts that Cooper and Goodyear will experience a positive modification in their share prices of $0.10 and $0.07 respectively.

11th January 2005/by Tyrepress Editors