Cooper Tire (NYSE: CTB) reported Q1 EPS of $1.05, $0.08 better than the analyst estimate of $0.97. Revenue for the quarter came in at $650 million versus the consensus estimate of $673.18 million.

Outlook

First quarter raw material costs decreased 10.1 percent from the fourth quarter of 2015, with the company’s internal raw material index decreasing from 146.2 to 131.5 in the first quarter. Cooper anticipates second quarter raw material costs will be up modestly from the first quarter.

Management updated expectations for full year 2016, which includes revised guidance for operating margin, tax rate and capital expenditures as follows.

• Unit volume growth is expected in each of the company’s segments.
• Total company operating margin, excluding the impact of acquisitions, is expected to be modestly above 2015 levels for full year 2016.
• The International segment, excluding the impact of acquisitions, is expected to generate continued improvement in operating profit in 2016 and is anticipated to approach break-even operating profit by the fourth quarter of this year.
• Effective tax rate for full year 2016 is expected to be in a range of 33 percent to 35 percent.
• Capital expenditures, excluding the impact of acquisitions, are expected to range from $210 million to $240 million for the year. The company continues to invest in organic growth and margin improvement initiatives across all regions, and has adjusted the guidance to more accurately reflect expected timing of capital spending for those investments.

For earnings history and earnings-related data on Cooper Tire (CTB) click here.