Aeolus Tyre reports 50.8% drop in 2010 net profits
Aeolus Tyre posted a 50.77 per cent year-on-year drop in 2010 net profit to 153 million yuan, business news wires have reported citing a company filings. Earnings per share are said to have fallen 50.79 per cent to 0.41 yuan per share. The good news was that sales revenue rose 44.45 per cent year-on-year to 8.12 billion yuan, however this also means margins must have narrowed significantly.
Chinese manufacturers, like the rest of the tyre manufacturing world has suffered from the rising raw material prices (especially natural rubber) that have affected production costs in recent months. These inflated input costs go some way to explaining the most recent report’s dip in profitability.
Nevertheless, according to the reports, Aeolus plans to distribute cash dividends of one yuan (including tax) for every 10 shares held.