SINGAPORE - Falling revenues caused profits to plummet at mainboard-listed Stamford Tyres Corporation.
Net profit for the three months to July 31 fell 85.7 per cent to $83,000 while revenue dropped 13 per cent to $65.3 million.
Net profit for the three months fell mainly because revenues fell. Revenue was weaker because of weaker sales in certain products and parkets, said Stamford Tyres.
Gross profit for the three months fell 5.2 per cent to $14.9 million.
Gross profit margin for the three months, however, improved 1.9 percentage points to 22.8 per cent . This was mainly due to 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 costs, salaries and depreciation.
Earnings per share for the three months was 0.04 cent, down from 0.25 cent for the corresponding period last year.
Net asset value at July 31 was 51.04 cents, down from 51.38 cents at April 30.
Stamford said in a statement that it would build on its core markets in South East Asia.
President of Stamford Tyres Corporation 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.