SINGAPORE (Dec 6): Stamford Tyres announced earnings of $19,000 for 2Q19, down 99% from $1.6 million in 2Q17 due to higher total expenditure and lower share of results of joint ventures.

This comes even as revenue for the quarter grew 7.9% y-o-y to $63.7 million from $59 million previously, on the back of improved sales in Stamford’s Southeast Asian markets.

Gross profit margin, however, fell to 21% in 2Q from 26.1% a year ago due to higher cost of sales in tyres as well as higher costs of wheel production.

Total expenditure grew 10.3% to $64.5 million from $58.5 million previously, largely due to an increase in costs of goods sold, marketing & distribution costs, as well as utilities, repairs & maintenance expenses.

Share of results of joint ventures fell to $87,000 over 2Q19 compared to $0.6 million a year ago due to lower sales from both of Stamford’s joint ventures.

For the half year of FY19, the group recorded a net profit of $0.1 million compared to $3.5 million a year ago.

Stamford says it will continue to optimise its product mix, manage operating costs, and build on its core markets in Southeast Asia with a view to mitigate the impacts of its challenging operating environment.

Shares in the group closed flat at 31 cents on Thursday.