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Cooper Tire & Rubber Company Reports Significantly Improved Third Quarter Results

		Cooper Tire & Rubber Company logo. (PRNewsFoto/COOPER TIRE & RUBBER COMPANY) FINDLAY, OH UNITED STATES

    FINDLAY, Ohio, Nov. 2 /PRNewswire-FirstCall/ -- Cooper Tire & Rubber
Company (NYSE: CTB) today reported operating profit of $71 million for the
quarter ended Sept. 30, 2009, a $118 million improvement from the same
period in 2008. Net sales for the period were $803 million, an increase of
$9 million from the prior year. Net income was $47 million for the quarter,
a $102 million improvement from a loss of $55 million in 2008. The Company
reported net income of 77 cents per share during this quarter on a diluted
basis.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20010404/COOPERLOGO )

    Improved results were driven by lower raw material costs and supported
by the Company's continued manufacturing improvements and improved
utilization of capacity. These positive impacts were offset by unfavorable
price and mix and restructuring charges. Quarterly sales volumes showed
improvement and had a minor positive impact on a year-over-year basis.

    The Company ceased production at its facility in Albany, Ga., during
the quarter and incurred related restructuring costs of $13 million, or 22
cents per share. Operating profit was a substantial 8.8 percent of net
sales during the quarter, compared with an operating loss of 5.9 percent
during the third quarter of 2008.

    The Company's cash position of $410 million as of Sept. 30, 2009, was
an increase of $162 million from Dec. 31, 2008, and was achieved while the
Company reduced debt by $77 million during the first nine months of 2009.
This was primarily the result of inventory reductions and improved
operating results.

    Through the first nine months of 2009, Cooper generated $2 billion in
net sales. Operating profit was $96 million during the same period,
compared with operating losses of $53 million in 2008.

    North American Tire Operations

    North American Tire operations sales were $574 million during the third
quarter, down slightly from 2008 net sales of $586 million during the same
quarter in 2008. This decrease was the result of increased volumes offset
by slightly worse price and mix impacts. Total shipments for the segment in
the United States were an increase of 2 percent, similar to the total
industry shipment increase of 3 percent reported by the Rubber
Manufacturers Association. The Cooper brand continued to outpace the
industry in the U.S. market, while private label shipments began to improve
relative to recent quarters, but still lagged industry comparisons.

    Operating profit for the third quarter improved significantly to $48
million, compared with operating losses of $51 million from the same period
in 2008. Raw material cost improvements during the quarter positively
affected results by $135 million compared with the prior year quarter.
Manufacturing operations improved by $13 million as a result of the
Company's continued focus on improvement in this area. Improvements in
market demand resulted in curtailment costs that were lower by $4 million.
Offsetting this were net negative price and mix changes of $25 million.
Products liability combined with selling, general and administrative costs
increased $9 million. Other charges including incentive related costs were
increased $5 million. Restructuring charges were $14 million larger than
the prior year.

    To date, the Company has incurred $113 million of restructuring costs
related to the closure of its Albany, Ga., facility. The total
restructuring costs are estimated to be $120 to $145 million, of which 60
to 70 percent are expected to be non-cash. Production ceased at the
facility in September and the Company is continuing with the process of
relocating equipment to its other facilities.

    For the nine months ended Sept. 30, 2009, the segment had operating
profit of $72 million, a $137 million improvement over the first nine
months of 2008.

    International Tire Operations

    The Company's International Tire Operations reported sales of $297
million in the quarter, a 4 percent increase of $12 million from the third
quarter of 2008. Asian operations increased sales volumes by 28 percent,
while European operations reported decreased unit sales of 13 percent.
Price and mix changes negatively impacted sales.

    Operating profit for the segment was $30 million compared with
operating profit of $7 million during the third quarter of 2008. Driving
this improvement were lower raw material costs of $49 million, higher
volumes which contributed $6 million and improved manufacturing operations
of $6 million. Currency changes added $7 million. These improvements were
offset by negative price and mix effects of $39 million. Selling, general,
administrative and other costs increased by $6 million.

    For the nine months ended Sept. 30, 2009, the segment had operating
profit of $46 million, a $26 million improvement over the first nine months
of 2008.

    Management Commentary and Outlook

    Roy Armes, Chief Executive Officer, commented, "The positive results
during the quarter were the outcome of successfully executing on our plan
in an environment where a positive price to raw material relationship
existed. This resulted in extremely positive margin growth and an operating
profit during the quarter of nearly 9 percent. Raw material prices have
escalated in recent months, but we do not expect a return to the high
levels of 2008. In this environment, our operating results will be
significantly affected by our ability to hold or increase prices.

    "We will continue to focus on improving our global cost structure,
profitably increasing the top line, and enhancing organizational
capabilities as the key elements of our strategic plan. To deal with the
tariffs announced by the United States government, we have implemented
selective price increases and are executing tactical sourcing moves to
mitigate the impacts while meeting our customers' needs.

    "Our international operations have continued to grow in importance to
our organization while the North American segment continues to explore
profitable opportunities to grow. Cooper employees around the globe
continue to focus on changes that will make us a stronger organization. Our
greatest concern in the near term is raw material price volatility.

    "This is an exciting time as we begin to see the benefits of changing
our competitive dynamics. However, we are in a very fluid industry and
environment. We believe the changes we have made are a great start in
positioning us for a more consistent level of profitability, and we
continue to develop in a way that will make us even stronger. The progress
we have seen gives us optimism about what this team can achieve over the
long term."

    Cooper's management team will discuss the financial and operating
results for the quarter in a conference call at 11 a.m. Eastern Time
Monday, Nov. 2. Interested parties may access the audio portion of that
conference call on the investor relations page of the Company's web site at
http://www.coopertire.com.

    About Cooper Tire & Rubber Company

    Cooper Tire & Rubber Company is a global company that specializes in
the design, manufacture, marketing and sales of passenger car, light truck,
medium truck tires and subsidiaries that specialize in motorcycle and
racing tires. With headquarters in Findlay, Ohio, Cooper Tire has
manufacturing, sales, distribution, technical and design facilities within
its family of companies located in 10 countries around the world. For more
information, visit Cooper Tire's web site at: http://www.coopertire.com.

    Forward-Looking Statements

    This report 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 United States 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," "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.

    It is possible that actual results may differ materially from those
projections or expectations due to a variety of factors, including but not
limited to:



    --  changes in economic and business conditions in the world;
    --  the failure to achieve expected sales levels;
    --  consolidation among the Company's competitors and customers;
    --  technology advancements;
    --  the failure of the Company's suppliers to timely deliver products in
        accordance with contract specifications;
    --  changes in interest and foreign exchange rates;
    --  changes in the Company's customer relationships, including loss of
        particular business for competitive or other reasons;
    --  the impact of reductions in the insurance program covering the principal
        risks to the Company, and other unanticipated events and conditions;
    --  volatility in raw material and energy prices, including those of steel,
        petroleum based products and natural gas and the unavailability of such
        raw materials or energy sources;
    --  the inability to obtain and maintain price increases to offset higher
        production or material costs;
    --  increased competitive activity including actions by larger competitors
        or low-cost producers;
    --  the inability to recover the costs to develop and test new products or
        processes;
    --  the risks associated with doing business outside of the United States;
    --  changes in pension expense and/or funding resulting from investment
        performance of the Company's pension plan assets and changes in discount
        rate, salary increase rate, and expected return on plan assets
        assumptions, or changes to related accounting regulations;
    --  government regulatory initiatives, including regulations under the TREAD
        Act;
    --  the impact of labor problems, including a strike brought against the
        Company or against one or more of its large customers or suppliers;
    --  litigation brought against the Company including products liability;
    --  an adverse change in the Company's credit ratings, which could increase
        its borrowing costs and/or hamper its access to the credit markets;
    --  changes to the credit markets and/or access to those markets;
    --  inaccurate assumptions used in developing the Company's strategic plan
        or the inability or failure to successfully implement the Company's
        strategic plan including closure of the Albany, Georgia facility;
    --  inability to adequately protect the Company's intellectual property
        rights;
    --  failure to successfully integrate acquisitions into operations or their
        related financings may impact liquidity and capital resources;
    --  inability to use deferred tax assets;
    --  recent changes to tariffs on certain tires imported into the United
        States from China, and;

    --  changes in the Company's relationship with joint venture partners.
    It is not possible to foresee or identify all such factors. Any
forward-looking statements

    in this report 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 periodic filings with
the U. S. Securities and Exchange Commission ("SEC").

    (Statements of income and balance sheets follow...)




                         Cooper Tire & Rubber Company
                      Consolidated Statements of Income

    (Dollar amounts in thousands except per share amounts)

                                  Quarter Ended        Nine Months Ended
                                   September 30           September 30
                             ----------------------  ----------------------
                                2008        2009        2008        2009
                             ----------  ----------  ----------  ----------

    Net sales                  $793,751    $802,794  $2,245,979  $2,005,931
    Cost of products sold       793,888     662,277   2,160,049   1,714,685
                             ----------  ----------  ----------  ----------
    Gross profit (loss)            (137)    140,517      85,930     291,246

    Selling, general and
     administrative              46,878      56,444     138,808     151,828
    Restructuring charges             -      13,385           -      36,446
    Settlement of retiree
     medical case                     -           -           -       7,050
                             ----------  ----------  ----------  ----------
    Operating profit (loss)     (47,015)     70,688     (52,878)     95,922

    Interest expense            (12,821)    (11,440)    (37,041)    (36,192)
    Debt extinguishment             (10)          -        (593)          -
    Interest income               3,902       2,259      11,294       4,739
    Dividend from
     unconsolidated
     subsidiary                       -           -       1,943           -
    Other income - net           (1,244)     (1,047)      2,274       1,025
                             ----------  ----------  ----------  ----------
    Income (loss) from
     continuing operations
      before income taxes       (57,188)     60,460     (75,001)     65,494

    Income tax benefit
     (expense)                    2,318      (2,628)      1,947         178
                             ----------  ----------  ----------  ----------

    Income (loss) from
     continuing operations      (54,870)     57,832     (73,054)     65,672

    Income (loss) from
     discontinued
     operations,
      net of income taxes          (133)       (337)         80     (37,786)
                             ----------  ----------  ----------  ----------

    Net income (loss)           (55,003)     57,495     (72,974)     27,886

    Net income attributable
     to noncontrolling
     shareholders' interests        378      10,664       2,952      15,282
                             ----------  ----------  ----------  ----------

    Net income (loss)
     attributable to
     Cooper Tire & Rubber
     Company                   $(55,381)    $46,831    $(75,926)    $12,604
                             ==========  ==========  ==========  ==========

    Basic earnings (loss)
     per share
      Income (loss) from
       continuing operations
       attributable to
       Cooper Tire & Rubber
       Company                   $(0.94)      $0.79      $(1.29)      $0.85
      Income (loss) from
       discontinued
       operations                 (0.00)      (0.01)       0.00       (0.64)
                             ----------  ----------  ----------  ----------
        Net income (loss)
         attributable to
         Cooper Tire &
         Rubber Company          $(0.94)      $0.79*     $(1.28)*     $0.21

    Diluted earnings (loss)
     per share
      Income (loss) from
       continuing operations
       attributable to
       Cooper Tire & Rubber
       Company                   $(0.94)      $0.77      $(1.29)      $0.84
      Income (loss) from
       discontinued
       operations                 (0.00)      (0.01)       0.00       (0.63)
                             ----------  ----------  ----------  ----------
        Net income (loss)
         attributable to
         Cooper Tire & Rubber
         Company                 $(0.94)      $0.77*     $(1.28)*     $0.21

    Weighted average
     shares outstanding
       Basic                     58,903      59,331      59,094      59,078
       Diluted                   58,903      61,050      59,094      60,095
    Depreciation                $34,732     $29,622    $103,887     $90,968
    Amortization                 $1,127        $532      $3,635      $1,645
    Capital expenditures        $35,080     $21,672    $100,592     $63,978

    Segment information
      Net sales
        North American Tire    $586,188    $573,886  $1,631,373  $1,440,536
        International Tire      284,684     296,841     799,431     720,235
        Eliminations            (77,121)    (67,933)   (184,825)   (154,840)

      Segment profit (loss)
        North American Tire     (51,165)     47,618     (64,927)     71,949
        International Tire        7,231      29,902      20,085      46,285
        Eliminations                396        (520)        113      (1,579)
        Unallocated corporate
         charges                 (3,477)     (6,312)     (8,149)    (20,733)



                        CONSOLIDATED BALANCE SHEETS

                                               September 30
                                        -------------------------
                                           2008           2009
                                        ----------     ----------

    Assets
    ------
    Current assets:
      Cash and cash equivalents          $264,035       $409,543
      Accounts receivable                 408,473        431,354
      Inventories                         502,593        310,968
      Other current assets                 42,743         44,877
                                        ----------     ----------
        Total current assets            1,217,844      1,196,742

    Net property, plant and equipment     995,410        877,241
    Goodwill                               31,340              -
    Restricted cash                         2,627          2,270
    Intangibles and other assets          102,392         85,181
                                        ----------     ----------
                                       $2,349,613     $2,161,434
                                        ==========     ==========


    Liabilities and Stockholders' Equity
    ------------------------------------
    Current liabilities:
      Notes payable                      $169,304       $143,612
      Trade payables and accrued
       liabilities                        512,715        491,036
      Income taxes                          1,881          3,051
      Liabilities of discontinued
       operations                           1,231         35,517
      Current portion of long-term debt    50,848        107,481
                                        ----------     ----------
        Total current liabilities         735,979        780,697

    Long-term debt                        411,690        329,943
    Postretirement benefits other
     than pensions                        250,793        247,577
    Pension benefits                       21,885        222,289
    Other long-term liabilities           114,670        138,674
    Long-term liabilities of
     discontinued operations                8,932          9,008
    Deferred income taxes                       -              -
    Stockholders' equity                  805,664        433,246
                                        ----------     ----------
                                       $2,349,613     $2,161,434
                                       ==========     ==========

    * Amounts do not add due to rounding.
    These interim statements are subject to year-end adjustments.