Cooper To Slow Production Due To Hurricaine
Cooper Tire will have to slow production by approximately 30,000 tyres per day due to raw material supply disruptions associated with Hurricane Rita, analysts have reported.
As a result the Deutsche Bank analysts are lowering their third and fourth quarter estimates to $0.10 and $0.08 from $0.15 and $0.10, respectively. This reduction is said to reflect anticipation of higher raw material/logistics costs, and slightly lowered production assumptions.
The analysts maintained their Hold rating, lowering their target price for Cooper shares to $16.50 from $21. “We feel a discount to the historical average is appropriate given both ongoing operational issues and uncertainties surrounding this company,” the commented.