Quarter profit plummets at Stamford Tyres
Stamford Tyres has reported its unaudited quarter earnings for the period between 1 August and 31 October 2011, a quarter in which its after-tax profit dropped 80.5 per cent. The Singapore-based company’s after-tax profit amounted to S$330,000 (£149,500) in the second quarter of the 2012 financial year, as opposed to $1.69 million a year earlier.
Total revenue for the quarter was $84.03 million (£41.87 million), a year-on-year rise of 2.07 per cent. This slowdown in revenue growth momentum was mainly due to lower sales in Thailand as a result of recent flooding, Stamford reports. The company also stated that a better sales mix let to an improvement in both gross profit and gross profit margin. Gross profit rose 8.0 per cent to $19.4 million during the quarter, while gross profit margin rose year-on-year from 21.9 per cent to 23.1 per.
The company says it expects steady growth to continue in its core wholesale and retail businesses, especially in the Singapore and Malaysia markets. However Stamford notes that business conditions in Thailand remain tough as the severe flood situation has affected the group’s wholesale and manufacturing businesses there. Stamford also reports it will continue to increase sales productivity, optimize product mix and manage operating costs.