Amtel-Vredestein Posts $110 million EBITDA
Amtel-Vredestein N.V. reports in un-audited results that it has exceeded the revenue projections made by the company in November 2006, by delivering sales of $823 million ($800 million estimated) and EBITDA of $110 million ($100 million estimated).
The Company cautions that certain non-cash adjustments to its 2006 results are still possible as it completes a protracted audit as a result of significant and complex transactions last year – including the acquisition of the Moscow Tyre Plant, the sale of its Amtel-Kuzbass chemical fibre plant in Kemerovo, Russia, and acquisitions of retail tyre centres throughout Russia.
Amtel-Vredestein has a positive outlook for 2007 and expects to achieve sales growth – primarily in its key passenger car tyre business. Sales are expected to fall between $1 – 1.1 billion in 2007 based on current sales trends and scheduled production output. Management also anticipates improvements in Gross Profit Margin consistent with previous years. EBITDA may exceed $120 million and rise to as high as $130 million. The Company expects to be profitable in 2007.
The company expects to sell over 16 million tyres in 2007, including 14.5 million passenger car tyres. Sales to original equipment manufacturers, including the largest Russian and most active international automobile manufacturers are expected to grow approximately 9 per cent in 2007 and OE as a percentage of total sales may grow as high as to 25 per cent in 2007/2008.
AV-TO, the company’s retail and distribution subsidiary is expected approach its breakeven point in 2007.