Cooper Tire & Rubber Company (NYSE:CTB) Files An 8-K Other Events
Item 8.01. Other Events.
On January 18, 2019, Cooper Tire & Rubber Company Europe Ltd. (“Cooper Tire Europe”), a subsidiary of Cooper Tire & Rubber Company (the “Company”), announced its decision to cease light vehicle tire production at its Melksham, England facility. Light vehicle tire production is expected to be phased out over a period of approximately 10 months. An estimated 300 roles will be eliminated at the site. Cooper Tire Europe will obtain light vehicle tires to meet customer needs from other production sites within the Company’s global production network. Approximately 400 roles will remain in Melksham to support the functions that continue there, including motorsports and motorcycle tire production, the materials business, Cooper Tire Europe headquarters/sales and marketing, and the Europe Technical Center.
The Company currently estimates that the total impact of this closure will be approximately $10 million to $15 million in restructuring charges, of which 25 to 35 percent are expected to be non-cash charges. The Company also currently estimates that, of this amount, the major costs associated with this closure will include severance and employee-related costs of approximately $5 million to $8 million and costs related to asset write-downs and other of approximately $5 million to $7 million.
A copy of the news release issued by the Company is attached as Exhibit 99.1 hereto and is incorporated herein by reference.
This Current Report on Form 8-K contains what the company believes are “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995, regarding projections, expectations or matters that the company anticipates may happen with respect to the future performance of the industries in which the Company operates, the economies of the U.S. and other countries, or the performance of the company itself, which involve uncertainty and risk. Such “forward-looking statements” are generally, though not always, preceded by words such as “anticipates,” “expects,” “will,” “should,” “believes,” “projects,” “intends,” “plans,” “estimates,” and similar terms that connote a view to the future and are not merely recitations of historical fact. Such statements are made solely on the basis of the Company’s current views and perceptions of future events, and there can be no assurance that such statements will prove to be true.
These forward-looking statements include, among others, statements regarding the Company’s subsidiary’s plans to cease light vehicle tire production in Melksham and continue its other operations. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein, including the timing to discontinue light vehicle tire production, the ability and timing to obtain these tires from other company facilities, turnover of employees, the impact on other operations, the Company’s ability to realize the benefits contemplated by the action and the final amount of restructuring charges, which could vary, perhaps materially, from estimates.
It is not possible to foresee or identify all such factors. Any forward-looking statements in this Current Report on Form 8-K are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that any such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected.
The Company makes no commitment to update any forward-looking statement included herein or to disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement. Further information covering issues that could materially affect financial performance is contained in the Company’s filings with the U.S. Securities and Exchange Commission.
Item 8.01 Financial Statements and Exhibits.
COOPER TIRE & RUBBER CO Exhibit
EX-99.1 2 a20190118pressreleasemarlo.htm EXHIBIT 99.1 Exhibit NEWS____________________________________________________________________________________________________________________________________________Cooper Tire Europe Moving Forward with Proposal to Cease Light Vehicle Tire Production at England FacilityFindlay,…
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About Cooper Tire & Rubber Company (NYSE:CTB)
Cooper Tire & Rubber Company (Cooper) is a manufacturer and marketer of replacement tires. The Company specializes in the design, manufacture, marketing and sales of passenger car and light truck tires. Cooper and its subsidiaries sell medium truck, motorcycle and racing tires. It has four business segments: North America, composed of its operations in the United States and Canada; Latin America, composed of its operations in Mexico, Central America and South America; Europe, and Asia. The North America and Latin America segments are presented as the Americas Tire Operations segment. The results of the combined Asia and Europe segments are presented as International Tire Operations segment. Cooper and its family of companies operate approximately eight manufacturing facilities and over 20 distribution centers in over 10 countries. Its Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement market.