Alliance Reports Record Sales in Second Quarter
Alliance Tire has reported total sales of $78.5 million compared to $63.6 million in the first half of 2004, up 23.4 per cent. Net income in the second quarter of 2005 grew 278 per cent, amounting to $4.6 million, compared to $1.2 million in the same quarter of 2004. “Marketing efforts, product mix and business conditions were the main factors to fuel the sales growth and profitability,” said company CEO Isia Tchetchik.
In the export market, sales increased in the first half of 2005 by 26 per cent to $61.8 million, compared to $49.0 million in the first half of 2004. In the European market, sales for the first half of 2005 grew at 28.7 per cent to $40.8 million, mainly due to a growing demand for agricultural tyres and Alliance’s introduction of new implement products adapted for European market demands.
Operating profit in the first half of 2005 amounted to $7.4 million, or 9.4 per cent of sales. Production growth stands at 15.5 per cent compared to the first half of 2004. The company’s backlog orders increased 20 per cent to $ 17.2 million at the end of the first quarter of 2005, compared to $14.3 million at the same period of 2004.
Joseph Anglister, Alliance President, said that in light of the growth in exports to Europe and North America, Alliance will continue to invest efforts in developing new products to fulfil these markets special demands and needs. “We have found a niche in the floatation and radial tyres that serve agriculture and forestry in these important markets, and have directed increased R&D efforts to continue to put us at the cutting edge of tyre technology in those regions,” Mr Anglister said.