SINGAPORE (Mar 12): Stamford Tyres reported third quarter earnings fell 58.1% to $0.95 million in 3Q18 from $2.3 million in 3Q17 on higher cost of sales for tyres and wheel production.
This brought 9M18 earnings ended Jan to $4.5 million, 15.1% lower than a year ago.
In 3Q18, total revenue rose 3.9% to $62.9 million from $60.5 million mainly due to new sales in North Asia. However, cost of goods sold rose 8.1% to $47.9 million. Marketing and distribution charges grew 42.3% to $2.1 million while utilities, repairs and maintenance rose 18.55% to $1.8 million. Other operating expenses fell 43.6% to $0.76 million.
In 3Q18, share of profits from joint ventures amounted to a net of $0.8 million, compared to $0.9 million in 3Q17, mainly due to lower sales by its India joint ventures.
Profit before taxation fell 45.5% to $1.6 million.
Stamford Tyres said the operating environment in the tyre business remains challenging as a result of global oversupply and intense competition.
To mitigate the impact of the challenging environment, the group will continue to optimise its product mix, manage operating costs and build on its core markets in South East Asia.
Shares in Stamford Tyres closed 1 cent higher at 36 cents.