DETROIT (Reuters) - Cooper Tire & Rubber Co (CTB.N: Quote, Profile, Research) said on Friday its first-quarter earnings will be "considerably below expectations" due to the U.S. economic slowdown and higher raw material costs, sending its shares down 12 percent.

The company, in a filing with the U.S. Securities and Exchange Commission, also cited liability claims and lower North American tire shipments, particularly in March.

Analysts were expecting the Findlay, Ohio-based company to earn 24 cents a share on sales of $692.1 million in the first quarter, according to Reuters Estimates.

Cooper Tire, which is scheduled to report the quarterly results on May 7, said the tougher economy in North America has "created a new set of challenges." Consumers have cut back on driving in reaction to the economic slowdown and are delaying tire purchases.

Goodyear Tire & Rubber Co (GT.N: Quote, Profile, Research), the No. 1 U.S. tiremaker, on Friday posted a better-than-expected quarterly profit, with price hikes and increased sales of more expensive tires offsetting higher raw material costs.

Cooper Tire said the weak dollar and record-high raw material prices, particularly for natural rubber and oil-derived materials, contibuted to its woes. It said it would focus on cost improvements during the year.

Shares of Cooper Tire were down $1.81 to $13.22 in afternoon trading on the New York Stock Exchange.

(Reporting by Ben Klayman, editing by Richard Chang and John Wallace)