Boston, MA 05/14/2014 (wallstreetpr) – Replacement tires manufacturer Cooper Tire & Rubber Co (NYSE:CTB) has started shipping its new line of tires. The launch of the premium touring tire called SC5 comes as the company celebrates its 100 years in business. Therefore, the company deemed it fit to mark the anniversary with a new product launch.
The new tire – CS5, will replace CS4 that the company considers its best-selling tire so far. In fact, the move to replace CS4 raised concerns among dealers as to why the company seeks to phase out a product with widespread market appeal. However, according to the management, CS5 would eventually become the best-selling tire because it features superior abilities than its predecessor and also comes at a competitive price.
Though it might seem that phasing out CS4 is akin to ruining a good thing, the company believes in refreshing its product portfolio and the introduction of CS5 is true to that spirit. Furthermore, the company said that CS5 provides enhanced features that will gain widespread appeal among customers and generate higher revenue.
Painstaking process
According to Scott Jamieson, the Director of Product Management at Cooper Tire & Rubber Co (NYSE:CTB), CS5 is far from being just an ordinary tire. The premium touring tire is a result of several years of research, development and testing. For example, CS5 boasts four-times the amount of silica in CS4. Therefore, the tire achieves greater wet traction than the predecessor and should appeal more to customers that are after quality tires.
More for same price
One of the many concerns that dealers raised over the phase-out of CS4 was that a costly product would hurt sales as customers seek for cheaper options. However, Cooper Tire & Rubber Co (NYSE:CTB) sought to address the concern by pricing the feature-rich CS5 competitively.
Cooper Tire & Rubber Co (NYSE:CTB) last reported earnings on May 2, during which the company earned 71 cents per share, beating Wall Street estimate of 49 cents per share. The company generated $796 million in revenue, missing consensus estimate of $836 million.
