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Cooper Tire to Expand in Asia With New Location in Vietnam
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Cooper Tire & Rubber Company is forming a joint venture with Sailun Vietnam Co., Ltd. to build a tire production hub in Vietnam. The new factory will have the capacity to manufacture more than 2 million truck and bus radial (TBR) tires per year. Subject to government approvals, the plant under the JV will be situated at Sailun Vietnam’s existing operations.
The construction will commence at the beginning of 2019 and the plant will be ready for tire production by the first half of 2020. The total spending on the equipment and development of this Vietnam-based facility is anticipated to be $220-$240 million.
The new JV in Vietnam is in sync with Cooper Tire’s strategy to diversify its TBR tire production in order to gain from the rising original equipment (OE) and replacement TBR business. Additionally, Cooper Tire will own 35% in the JV.
The company is focusing to optimize its global production capabilities by forming a competitive cost structure and improving regional production capacity per the market requirements. In fact, the growing original equipment business impelled Cooper Tire to expand its presence in Asia. For the long term, the company has good prospects in its Asia business, with expanding customer base.
In third-quarter 2018, Cooper Tire’s earnings surpassed the Zacks Consensus Estimate while revenues missed. During the third quarter, the entire tire industry witnessed a challenging environment, which impacted Cooper Tire’s financial performance. However, an improved industry condition toward the quarter-end helped the company to witness year-over-year rise in net sales generated by its two segments. Americas tire operations registered net sales of $629 million while International tire operations generated $162 million.
For the fourth quarter, Cooper Tire anticipates volume growth in the United States. But, economic challenges in other markets and high raw material costs due to tariffs are expected to hamper its margin.
Price Performance
Over the past three months, Cooper Tire’s stock has gained 2.8% outperforming 10.8% decrease recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
Cooper Tire currently sports a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Tesla, Inc. (TSLA - Free Report) and AutoZone, Inc. (AZO - Free Report) . Fox Factory and Tesla currently sport a Zacks Rank #1 (Strong Buy) while AutoZone carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 34.8% over the past six months.
Tesla has an expected long-term growth rate of 35%. Shares of the company have rallied 16.5% over the past three months.
AutoZone has an expected long-term growth rate of 12%. Over the past three months, shares of the company have gained 13.3%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Cooper Tire to Expand in Asia With New Location in Vietnam
Cooper Tire & Rubber Company is forming a joint venture with Sailun Vietnam Co., Ltd. to build a tire production hub in Vietnam. The new factory will have the capacity to manufacture more than 2 million truck and bus radial (TBR) tires per year. Subject to government approvals, the plant under the JV will be situated at Sailun Vietnam’s existing operations.
The construction will commence at the beginning of 2019 and the plant will be ready for tire production by the first half of 2020. The total spending on the equipment and development of this Vietnam-based facility is anticipated to be $220-$240 million.
The new JV in Vietnam is in sync with Cooper Tire’s strategy to diversify its TBR tire production in order to gain from the rising original equipment (OE) and replacement TBR business. Additionally, Cooper Tire will own 35% in the JV.
Cooper Tire & Rubber Company Price and Consensus
Cooper Tire & Rubber Company Price and Consensus | Cooper Tire & Rubber Company Quote
The company is focusing to optimize its global production capabilities by forming a competitive cost structure and improving regional production capacity per the market requirements. In fact, the growing original equipment business impelled Cooper Tire to expand its presence in Asia. For the long term, the company has good prospects in its Asia business, with expanding customer base.
In third-quarter 2018, Cooper Tire’s earnings surpassed the Zacks Consensus Estimate while revenues missed. During the third quarter, the entire tire industry witnessed a challenging environment, which impacted Cooper Tire’s financial performance. However, an improved industry condition toward the quarter-end helped the company to witness year-over-year rise in net sales generated by its two segments. Americas tire operations registered net sales of $629 million while International tire operations generated $162 million.
For the fourth quarter, Cooper Tire anticipates volume growth in the United States. But, economic challenges in other markets and high raw material costs due to tariffs are expected to hamper its margin.
Price Performance
Over the past three months, Cooper Tire’s stock has gained 2.8% outperforming 10.8% decrease recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
Cooper Tire currently sports a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Tesla, Inc. (TSLA - Free Report) and AutoZone, Inc. (AZO - Free Report) . Fox Factory and Tesla currently sport a Zacks Rank #1 (Strong Buy) while AutoZone carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 34.8% over the past six months.
Tesla has an expected long-term growth rate of 35%. Shares of the company have rallied 16.5% over the past three months.
AutoZone has an expected long-term growth rate of 12%. Over the past three months, shares of the company have gained 13.3%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>