Cooper Tire & Rubber Company Q3 2009 Earnings Call Transcript

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2009-11-02 11:12:15.0

Tags: Deutsche Bank AG, J.P. Morgan Chase & Co., Cooper, Call Transcript, Tariff, Earnings, Pricing Strategy, Pricing, Marketing Research, Free Trade, Marketing, Finance, Seeking Alpha, Cooper Tire & Rubber Co.

Question-and-Answer Session

Operator

Your first question comes from Himanshu Patel - JP Morgan.

Himanshu Patel - JP Morgan

On the last conference call, I believe you guys said that, pricing discipline was still for the most part holding in, but you had sequentially seen deterioration in pricing. Can you talk about how pricing was sequentially this quarter?

Curtis Schneekloth

Pricing discipline was pretty good in relationship to where raw material costs moved. We did see a little bit of movement down in price, but our pricing results also reflected our take the money and ride promotions and some other things we had going on. So I would say pricing discipline overall was pretty solid again during the quarter. Fourth quarter, you can probably expect it to behave similar again.

Himanshu Patel - JP Morgan

Then was there a surge in Chinese imports ahead of the tariff? If so, how do you guys kind of expect that to impact your market share in the next few months or quarters?

Curtis Schneekloth

We did not see a major surge. There was some buying, but we don’t see that as a major issue that will cause a flip flop of volumes that otherwise would have been delivered in the fourth.

Himanshu Patel - JP Morgan

Then last question. Just I guess you guys are a month into the price increase that you imposed post tariffs. Any commentary on how that’s doing in terms of how well it’s sticking?

Roy Armes

We are out there executing that price increase. I think there was an understanding from our customers about the impact of this tariff and we’ve been working with our customers to get this implemented and so far, I would say, we’ve still been successful in making that happen.

Operator

Your next question comes from Rod Lache - Deutsche Bank.

Rod Lache - Deutsche Bank

I had a couple things. First, you ran through this on your North American EBIT walk. Did you say that the $13 million impact was net of some costs you were incurring and the gross savings number was closer to $25 million?

Roy Armes

Yes, I did say that.

Rod Lache - Deutsche Bank

That’s separate from the restructuring costs that you incurred in the quarter that you called out?

Roy Armes

Yes, and we wanted to make that point so that people didn’t think it was one in the same.

 

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