Stamford Tyres' quarterly net profit falls 85.7%

Falling revenue sent earnings plummeting at mainboard-listed Stamford Tyres Corporation for the three months to July 31.

Net profit for Stamford Tyres for the three months fell 85.7 per cent to $83,000 compared with the same period a year earlier, while its turnover fell 13 per cent to $65.3 million.

The revenue decline was blamed on weaker sales in certain products and the markets, said Stamford Tyres.

Gross profit margin for the quarter improved by 1.9 percentage points to 22.8 per cent, mainly due to the lower cost of sales.

Operating expenses decreased by 1.2 per cent to $14.8 million. Lower marketing and foreign exchange costs were offset by higher finance expenses, salaries and depreciation.

Earnings per share for the quarter was 0.04 cent, down from 0.25 cent in the corresponding period last year, while net asset value was 51.04 cents as at July 31, down from 51.38 cents as at April 30.

Stamford Tyres said in a statement that it would build on its core markets in South-east Asia.

President Wee Kok Wah said: "The global economic outlook is challenging. 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 value-adding segments such as Stamford Tyres Mart retail chain and truck centres.

A version of this article appeared in the print edition of The Straits Times on September 05, 2015, with the headline 'Stamford Tyres' quarterly net profit falls 85.7%'. Print Edition | Subscribe