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Cooper Tire & Rubber Announces Bradley E. Hughes as President and CEO

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Price movement

Cooper Tire & Rubber (CTB) rose by 0.93% to close at $34.16 per share during the fifth week of August 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.93%, -0.53%, and -8.9%, respectively, as of September 2.

CTB is now trading 0.97% above its 20-day moving average, 6.5% above its 50-day moving average, and 2.0% below its 200-day moving average.

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Related ETFs and peers

The iShares Dow Jones US Consumer Goods Sector Index Fund (IYK) invests 0.07% of its holdings in CTB. The ETF tracks a market-cap-weighted index of stocks in the US consumer goods sector. The YTD price movement of IYK was 9.3% on September 2.

The Vanguard Small-Cap Value ETF (VBR) invests 0.11% of its holdings in CTB. The ETF aims to track the CRSP US Small-Cap Value Index. The index selects from a list of stocks in the 85%–99% range of market cap based on five value factors.

The market cap of CTB’s competitors are as follows:

  • Boeing (BA): $83.5 billion
  • Goodyear Tire & Rubber (GT): $7.9 billion

Latest news and 2Q16 performance

Bradley E. Hughes has been appointed as President, Chief Executive Officer, and Director of Cooper Tire & Rubber.

CTB reported 2Q16 net sales of $740.3 million, which represents a fall of 1.5%, as compared to its net sales of $751.8 million in 2Q15. Sales of its Americas Tire and International Tire segments fell by 2.7% and 1.0%, respectively, in 2Q16 over 2Q15. The company’s gross profit margin and operating profit rose by 14.3% and 10.6%, respectively, in 2Q16 over 2Q15.

CTB’s net income and EPS (earnings per share) rose to $70.7 million and $1.27, respectively, in 2Q16, as compared to $59.6 million and $1.03, respectively, in 2Q15.

CTB’s cash and cash equivalents and inventories rose by 1.0% and 3.7%, respectively, in 2Q16 over 2Q15. Its current ratio rose to 3.1x, and its debt-to-equity ratio fell to 1.4x in 2Q16, as compared to its current and debt-to-equity ratios of 2.9x and 1.7x, respectively, in 2Q15.

Projections

The company has made the following projections:

  • non-cash pension settlement charge in the range of $14 million–$18 million in fiscal 3Q16 related to optional lump-sum payments of benefits offered to certain former employees
  • effective tax rate in the range of 33%–35% for fiscal 2016
  • capital expenditure in the range of $210 million–$240 million, excluding the impact of acquisitions, for fiscal 2016

Next, we’ll look at Fossil Group (FOSL).

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