FINDLAY, Ohio (AP) — Cooper Tire & Rubber's net income grew more than fourfold in the third quarter, aided by lower raw material costs, new products and cost-cutting efforts.
The earnings performance easily beat analysts' estimates, and Cooper's stock rose to its highest point in more than a year.
The company earned $74.1 million, or $1.17 per share, for the period that ended Sept. 30. That compares with $17.3 million, or 27 cents per share, a year earlier.
Analysts predicted earnings of 86 cents per share, according to a FactSet survey.
Raw material prices dropped 13 percent from the second quarter, with Cooper Tire anticipating that fourth-quarter raw materials costs will be basically flat with the third quarter. The company said that the long-term outlook for raw material prices is for them to generally trend higher.
Revenue increased 5 percent to $1.1 billion from $1.05 billion. Wall Street expected $1.11 billion.
Revenue for its North American tire operations rose 7 percent on higher prices and increased unit volumes. International tire operations revenue fell 3 percent partly on softness in Europe.
Shares of Cooper Tire & Rubber Co. gained $3.53, or 17.5 percent, to $23.68 in Friday afternoon trading. The stock hit $23.71 earlier in the session, its highest level since June 2011.