Cooper Tire Adjusts Production

Cooper Tire & Rubber Company (CTB - Analyst Report) specializes in the manufacture and marketing of automotive products. The company's strategy of outsourcing production to low-cost countries and other costruction measures are some of the positive factors associated with the stock.

However, a challenging North American auto environment, elevated raw material costs and strong competition lead us to rate the stock a Hold with a six-month target price of $7.00.

On October 1, 2008, Cooper Tire announced that it continues to adjust production schedules at its U.S. facilities primarily due to raw material shortages and soft demand in the North American market. The savings during the third quarter due to production adjustments was estimated at $9 to $11 million.

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