FINDLAY, Ohio (Oct. 18, 2005) — Cooper Tire & Rubber Co. has withdrawn its guidance for its third quarter earnings, citing changing market and company conditions.
Cooper said on Aug. 2 when it reported its second quarter results that it expected to post earnings of 10 to 14 cents in the third quarter. Cooper reported a net loss of $7 million, or 11 cents per share, in the second quarter. The Findlay-based tire maker's previous guidance for the third quarter included an 8-cent impact from the strike in Texarkana, Ark., earlier this year.
Cooper did not provide revised guidance. The company will report its third quarter results Nov. 8.
In withdrawing the guidance, the tire maker said some conditions changed from management's expectations at the time. The factors included: softer industry demand in the North American replacement tire market; lower than anticipated sales; changes in raw material costs; higher shipping and transportation costs; and higher energy costs.
On Oct. 6, Standard & Poor's downgraded Cooper's credit rating to “junk” status, citing poor near-term earnings and cash flow prospects.