SINGAPORE (June 25): Stamford Tyres Corporation saw its full-year earnings fall 36.0% to $5.2 million for the FY18 ended April, from $8.1 million a year ago.

FY18 sales revenue rose 2.8% to $242.4 million on the back of new sales in North Asia.

However, gross profit margin fell 1.2 percentage points to 25.0% in FY18, mainly due to higher cost of sales in tyres and higher cost of wheel production.

Total operating expenses increased by 5.4% to $59.4 million in FY18, compared to $56.4 million a year ago. This was attributed to higher foreign exchange costs, staff costs, marketing and distribution costs, and maintenance costs.

The group has declared a final dividend of 1.0 cent per share for the period – some 33.3% lower than the final dividend of 1.5 cents per share a year ago.

Looking ahead, the group says the operating environment in the tyre business is expected to remain challenging amid global oversupply and intense competition.

“We continue to focus on growing our sales of car tyres and SSW wheels, as well as truck tyres and mining tyres. We are also focusing on improving our sales productivity and value-added segments such as Stamford Tyres Mart retail chain and truck centres,” says Wee Kok Wah, president of Stamford Tyres.

Shares of Stamford Tyres last closed at 33 cents on June 11.