Cooper Tire & Rubber Co., reported higher fourth-quarter
earnings, helped by its restructuring of a unit that makes hoses, seals
and other automotive components. The Findlay, Ohio-based company also
said it expects lower earnings for the first quarter of 2003, although
it sees higher full-year results if the U.S. economy picks up in the
latter half of the year.
Net income at the company increased to $23 million, or 32 cents a
share, from $15.7 million, or 22 cents, a year ago. Results were at the
top end of Cooper's Oct. 16 forecast of 27 cents to 32 cents.
Revenue rose to $842 million from $777 million.
Net sales at its Cooper-Standard Automotive unit, which makes
hoses, sealing systems and other products for automakers, increased
nearly 8 percent in the fourth quarter to $389 million, the company
said. The company credited strong car production in North America and
new business in both North America and Europe.
Operating profit at the unit jumped to $25 million from $5 million
a year ago due to operating improvements and cost savings from
restructuring, efficiency initiatives and increased production volume.
Restructuring alone generated savings of $8 million in the quarter, the
company said.
Its tire unit reported weaker results. Sales rose nearly 9 percent
to $458 million, although its unit sales increased 10 percent. Operating
profit fell to $30 million from $40 million a year ago.
COPYRIGHT 2003 International Trade
Services Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2003, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.