Cooper Tire Goes Flat: Fool by Numbers

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On Nov. 8, Cooper Tire & Rubber (NYSE: CTB) released Q3 2006 earnings for the period ended Sept. 30.

• Revenues rose 28% over the prior-year period, on the strength of sales from operations in China that the company acquired at the beginning of the year.
• Despite the increase in sales, operating income was severely affected by its cost reduction efforts and the resignation of its CEO after the second quarter. Add in costs associated with closing a plant in the U.S. and Cooper had an operating loss of $7 million.
• The company had a net loss of $25 million, or $0.41 per share, for the quarter, compared with virtually breaking even last year.
• Cooper Tire carries a semi-flat two-star rating in Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$715,795	$557,800	28.3%
Net Profit	($24,993)	($840)	N/A
EPS	($0.41)	($0.01)	N/A
Diluted Shares	61,339	61,290	0.1%

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	7.20%	9.94%	(2.74)
Operating Margin	(1.02%)	2.47%	(3.49)
Net Margin	(3.49%)	(0.15%)	(3.34)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$105,137	$446,770	(76.5%)
Accounts Rec.	$468,753	$382,730	22.5%
Inventory	$424,018	$343,670	23.4%

Learn the ways of the balance sheet.

Cash Flow Highlights

This information was not included in the press release.

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Related Companies:

• Goodyear Tire & Rubber (NYSE: GT)
• Bandag (NYSE: BDG)
• Ford (NYSE: F)
• General Motors (NYSE: GM)
• Pep Boys (NYSE: PBY)
• Titan (NYSE: TWI)

Related Foolishness:

• Goodyear's Workers Hit the Road
• Cooper Tire Running Flat
• Tire Makers Ready to Roll?
• Tire Makers More Than Just Retreads

Eleven Motley Fool CAPS players pick Cooper Tire & Rubber to outperform the market. Nine say it will underperform. Where do you stand? Join more than 12,000 fellow investors in the Fool's new stock-rating service and let your voice be heard .

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Rich Duprey owned shares of Goodyear and Ford, but did not own any of the other stocks mentioned. Fool rules are here.