STAMFORD Tyres Corporation, a tyre and wheel distributor in South-east Asia, logged an 83 per cent plunge in full-year net profits, on the back of flat revenue.
Net profit for the year ended April 30 came in at $1.7 million, some way off from the $10 million in the same period a year ago.
Revenue inched up 0.65 per cent to $292.5 million.
The company, in a statement yesterday, said the increase in its total revenue would have been higher if not for the strengthening of the Singdollar against the Indonesian rupiah, South African rand, Malaysian ringgit and Australian dollar.
Gross profit margin for the full year slipped to 22.1 per cent, compared with 22.8 per cent the year before.
Operating expenses fell 1.9 per cent to $62 million due to lower allowance for doubtful debts, allowance for inventory obsolescence and rental expenses offset by higher depreciation, salaries and marketing costs.
Earnings per share fell to 0.72 cents, a fraction of the 4.25 cents previously, while net asset value per share stood at 51.38 cents as at April 30, down from the 52 cents a year ago.
The group proposed a final dividend of one cent per share, which will be paid to shareholders on a date to be announced later.
"The challenging environment has resulted in the group facing stiff competition in some markets in which we are operating," said Stamford Tyres president Wee Kok Wah.
"As a result, our gross profit margin was slightly affected."
The firm added that it expects the operating environment to continue to be challenging as the global economic outlook remains uncertain.
"To mitigate this challenging environment, the group will continue to optimise its product mix and manage operating costs so as to enhance its performance."
Stamford Tyres shares closed half a cent down at 34 cents yesterday.