Cooper Tire Concrete Co-Investment Acquisition in Mexico

28 January 2020

Cooper Tire & Rubber Company announced today that it finalized the agreement announced on November 1, 2019 to increase its participation in the joint venture of its tire manufacturing plant, Corporation de Occidente SA de CV (COOCSA), from 58 percent to 100 percent.

"Having full control of COOCSA is part of Cooper's strategic plan to optimize its global manufacturing footprint with the production of high-quality tires in key geographic areas at competitive costs," said Brad Hughes, Cooper's CEO and CEO. "We are excited to continue working with the team in Mexico with the purpose of improving the global competitiveness of the plant in the tire industry."

Advance Declarations

This release contains what the company considers to be “projections or statements about future events”, a term defined in the “Private Securities Litigation Reform Act” of 1995, in relation to the expectations and projections that the company anticipates that may occur with respect to performance projected of the industry in which it operates, the economy of the United States of America, as well as other countries, or regarding the performance of the company itself, which involve uncertainty and risk. These projections or statements about future events are generally preceded, although not always, with words such as "anticipate", "trust", "will", "shall", "believe", "project", "intend", "plan" esteem ”, and similar terms that connote a vision of the future and are not mere recitations of historical facts.

These projections or statements about future events include, among others, statements regarding the company's purchase of TRADOC's shareholding in COOCSA, the synergies and benefits envisioned by the transaction, the company's investment plans in COOCSA, and the expectations of future business plans, potential performance and opportunities. There is no guarantee that the company will be able to finance the planned investments in COOCSA or to achieve the benefits provided by the transaction.

In addition, current results may differ materially from projections or expectations due to a variety of factors, including without limiting the following:

  • Volatility in the prices of raw materials and energy, including rubber, steel and petroleum products and natural gas or even the shortage of such inputs or energy resources.
  • The lack of timely delivery of products or services by the company's suppliers in accordance with the specifications of the contract.
  • Changes in tariffs or trade agreements, or the imposition of new or higher tariffs or trade restrictions, taxes on tires, materials or manufacturing equipment that the company uses, including changes related to tariffs on tires, raw materials and manufacturing equipment of tires imported to the US from China or other countries.
  • Changes in economic and business conditions in the world, including changes related to UK decisions to withdraw from the European Union;
  • Inability to obtain and maintain price increases to compensate for increased production, tariffs or material costs;
  • The impact of the recently enacted tax reform;
  • Increase in competition, including actions of larger competitors or lower cost producers;
  • The inability to reach the expected sales levels;
  • Changes in relations with customers or suppliers or in the distribution routes of the company, including the amortization of overdue accounts receivable or the loss of a particular business for reasons of competition, credit, liquidity, bankruptcy, restructuring or other reasons;
  • The lack of development of technologies, processes or products necessary to meet demand or changes in consumer behavior, including changes in commercial channels;
  • The costs and times in reforming behaviors and deteriorations or other charges resulting from such behaviors, including the possible outcome of deciding to end the production of tires for light vehicles in the United Kingdom, or adverse conditions in the industry, in the market or other factors;
  • Consolidation or other cooperation by and between competitors or customers of the company.
  • Inaccurate assumptions used in the development of the strategic plan or the company's operational plans, or the inability to successfully implement such plans or to achieve in advance the savings or profits derived from such strategic actions.
  • Risks related to investments and acquisitions, including the successful lack of integration of operations or their related financing can have an impact on liquidity and capital resources;
  • The final result of litigation against the company, including claims for objective liability arising from the products, which could result in the commitment of significant resources and time for its defense and possible material damages against the company or other unfavorable results;
  • An interruption or failure in the company's information technology systems, including those related to information technology security, could adversely affect the business operations and financial performance of the company;
  • Government legislative initiatives, including those of environmental, health, intellectual property and fiscal law.
  • The volatility of financial and capital markets or changes in credit markets and / or access to them.
  • Variations in interest rates or exchange rates or the benchmarks used to establish them;
  • An adverse change in the credit rating of the company, which could increase loan costs and / or hinder access to credit markets;
  • The lack of implementation of information technologies or related systems, including the lack of successful implementation of ERP systems by the company.
  • The risks associated with doing business outside the United States;
  • Technological advances;
  • The inability to recover costs to update existing products or develop and test new products or processes;
  • The impact of labor problems, including work interruptions in the company, its associations and co-investments or in one or more of its relevant clients or suppliers;
  • Not being able to attract or retain key personnel;
  • Changes in pension expenses and / or financing as a result of the company's pension plan, return on the assets of the company's pension plans and changes in the discount rate or expected profitability of such plans or changes related to accounting regulations;
  • Changes in the company's relationship with its partners in co-investments or with suppliers, including any changes with respect to the production of TBR products by its previous PCT partner;
  • The ability to find and develop alternative sources for products supplied by PCT;
  • A variety of factors, including market conditions, that may affect the current amount applied to share repurchases; the company's ability to consummate share repurchases; changes in the results of the operations or the financial conditions of the company or the strategic priorities, which may lead to a modification, suspension or cancellation of share repurchases, which may occur at any time;
  • The inability to adequately protect the company's intellectual property rights; Y
  • The inability to use deferred tax assets.


It is not possible to predict or identify all these factors. Any projection or statement about future events in this release is based on certain assumptions and analyzes made by the company in the light of its experience and perception of historical trends, current conditions, expected future performance and other factors deemed appropriate in these circumstances. . Prospective investors are cautioned that such statements do not represent or should be construed as a guarantee of future performance and that actual results may differ materially from those projected.

The company does not undertake to update any projections or statements about future events included in this document or to disclose any fact, event or circumstance that may affect the accuracy of any projection or statement about future events, except those required by law.

Additional information on the issues that could materially affect the financial results is available in the company's records with the US Securities and Exchange Commission ("SEC").

About Cooper Tire & Rubber Company

Cooper Tire & Rubber Company is the leading shareholder of a global family of companies that specialize in the design, manufacture, marketing and marketing of tires for passenger vehicles, light and medium trucks, motorcycles and racing. Cooper's corporate offices are in Findlay, Ohio, with manufacturing, commercial, distribution, research and development facilities in more than a dozen countries. For more information about Cooper visit www.coopertire.com , www.facebook.com/coopertire or www.twitter.com/coopertire .

Contacts
Investor Contact:

Jerry Bialek
Cooper Tire & Rubber Company
419.424.4165
[email protected]

Media Contact:
Anne Roman
Cooper Tire & Rubber Company
419.429.7189
[email protected]

Antonio Ocaranza
Oca Reputacion (Mexico)
(521) 5540944608
[email protected]

 

Source: businesswire.com