Stamford Tyres report 13.3% drop in net profit to $10 million

SINGAPORE - Stamford Tyres Corp's net profit deflated by 13.3 per cent to $10 million.

Revenue for the 12 months to April 30 fell by 8.5 per cent to $290.6 million, mainly due to softening demand for Sumo Firenza tyres in Europe, and mining tyres in Indonesia and South Africa.

Consequently, gross profit dipped to $66.2 million from $68.1 million last year.

Gross profit margin, however, increased to 22.8 per cent from 21.4 per cent last yeardue to the following factors:

* Better support from principals resulting in lower cost of sales in its tyre distribution

segment;

* Higher contributions from value-added services at its retail chain and truck tyre

centres; and

* Turnaround in wheel plant operations attributable to better sales mix.

Earnings per share slipped to 4.25 cents from 4.92 cents previously while net asset value per share grew by 0.96 cent to 52 cents.

Stamford Tyres president Wee Kok Wah said the results were commendable bearing in mind the challenging environment it operated in.

"In April this year, we opened a new commercial centre which is located next to our existing premises. With the new commercial centre, we are now not only the largest independent tyres and wheels distributor in Singapore, but also the region. This will enable us to build on our core markets in South East Asia."

An unchanged final dividend of 1.5 cents a share was proposed.