Increasing Shareholder Value Focus Of Cooper
Annual Meeting
* Continued emphasis on increasing shareholder value
* Record sales growth in 2000
* Restructuring plan on schedule
* Board declares quarterly dividend
FINDLAY, Ohio, May 2 COOPER TIRE & RUBBER COMPANY
Record sales growth in 2000, ongoing company integration, and
improved operating efficiencies were business highlights presented at
Tuesday's annual meeting of shareholders.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010404/COOPERLOGO )
In an overview of 2000, Phil Weaver, chief financial officer, reported
that the Company had experienced an "all time record level of sales" in both
its tire and automotive divisions. For the year ended December 31, 2000, the
Company achieved a record $3.5 billion in net sales, an increase of 58% over
1999. The sales level resulted in Cooper being named once again to Fortune
magazine's Fortune 500 list after a six-year absence.
During his State of the Company presentation, Weaver also discussed the
progress to date of a fourth quarter restructuring plan, Cooper-Standard's
significant growth, the acquisition of Siebe Automotive in January 2000, and
the Company's plan to make the most efficient use of acquired assets.
Weaver also discussed difficult market conditions during the first quarter
2001 that adversely affected Cooper and the industry as a whole. He was,
nonetheless, optimistic when looking to the future.
"We have a solid strategic plan and an excellent team to implement it," he
added. "We were not happy with our earnings during the first quarter and are
taking an aggressive stance to improve shareholder value during the remainder
of the year. We are flexing our operations to accommodate the changing needs
of our customers, deferring capital expenditures, and eliminating all possible
costs during times of low product demand."
Tom Dattilo, chairman, president and chief executive officer, followed
Weaver on the podium and briefly reviewed the Company's strategic plan for
increasing shareholder value. It includes top line growth, improved operating
efficiency, continued cost containment measures, and improved asset
utilization. This, he stated, is designed to ultimately improve earnings and
return on invested capital.
"We are on track with our plan to bring Cooper-Standard more in line with
our historical operating margins," Dattilo added. "We are focusing on
manufacturing entire systems and modules rather than commodity products. Our
announced restructuring and rationalization plans are also on schedule and
will improve our operating efficiencies."
In closing, Dattilo stated that the Cooper Tire & Rubber Company is in a
period of "rationalization and transition," laying the foundation for
significant growth in the future.
At the business meeting, shareholders re-elected Arthur H. Aronson, Thomas
A. Dattilo, and Byron O. Pond to the board of directors for terms expiring in
2004. Shareholders also approved the 2001 incentive compensation plan, and
approved a proposal requesting that steps be taken to declassify the board.
Meeting on May 1, 2001, the board of directors of Cooper Tire & Rubber
Company declared a quarterly cash dividend of 10.5 cents per share on common
stock, payable June 29, 2001, to stockholders of record June 1, 2001.
Company Description
Cooper Tire & Rubber Company is headquartered in Findlay, Ohio and
specializes in the manufacture and marketing of automotive products. Products
for Cooper Tire include automotive, motorcycle and truck tires, inner tubes,
tread rubber and equipment. Cooper-Standard Automotive is an original
equipment supplier of sealing, trim, NVH control systems and fluid handling
systems for the automotive industry in North America, Europe, Australia and
South America. Cooper has more than 20,000 employees and 57 manufacturing
facilities in 13 countries. For more information, visit the Company's web
site at: http://www.coopertire.com .
Forward-Looking Statements
This report contains "forward-looking statements," as that term is defined
under the Private Securities Litigation Reform Act of 1995, regarding
expectations for future financial performance, which involve uncertainty and
risk. It is possible the company's future financial performance may differ
from expectations due to a variety of factors including, but not limited to:
changes in economic and business conditions in the world, increased
competitive activity, achieving sales levels to fulfill revenue expectations,
consolidation among the company's competitors and customers, technology
advancements, unexpected costs and charges, fluctuations in raw material and
energy prices, changes in interest and foreign exchange rates, regulatory and
other approvals, the cyclical nature of the automotive industry, the loss of a
major customers, risks associated with integrating the operations of The
Standard Products Company and Siebe Automotive, and the failure to achieve
anticipated synergies, savings and other capital avoidance.
It is not possible to foresee of 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.
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