Cooper 3Q profit jumps through lower costs

tyres-1North American tyre and rubber company, Cooper Tire & Rubber unveils its net profits for the third quarter, showing that its net income increased through the help of lower raw material costs, the cost-cutting methods it applied and the new products.

The company’s performance beat future estimates as its stocks jumped to the highest point in more than an annual.

The company has gained US$74.1 million or US$1.17 per share for the third quarter that ended on September 3. It is relatively higher when compared to the earnings earlier this year which is US$17.3 million of 27% per share.

Prices for raw materials have dropped 13% from the second quarter and Cooper is expecting that the prices would steady in the third to the fourth quarter. The company said this helped them to gain more.

Cooper’s revenue has increased 5% to US$1. 1 billion from US$1. 05 billion with Wall Street expecting US$1. 11 billion.

The company’s revenue in North America has jumped to 7% on higher prices with production continue to increase while the revenue from the international operation fell 3% due to the crisis in Europe.

In the Friday afternoon trading, Cooper Tyre & Rubber Co. profited US$3.53 or 17.5% in shares to US$23.68.