Stamford profits hammered in Q3
Newly-published third quarter results show a Stamford Tyres experienced slight decline in turnover and a marked year-on-year drop in profits during the period.
In the three months ending 31 January 2014, the Singapore-based company’s revenues decreased 2.94 per cent in the quarter to S$71.7 million (£34.0 million), mainly due to weaker export sales of Sumo Firenza tyres and mining tyres. Gross profit was down 2.35 per cent to $16.6 million (£7.9 million). Despite this, gross profit margin increased from 23.0 per cent to 23.2 per cent. This increase in margin was attributed to lower cost of sales and continued higher contributions from value-added services at the Stamford Tyres Mart retail chain and truck tyre centres. Net profit fell 62.66 per cent to S$838,000 (£397,560). Earning per share was $0.36 (£0.17).
Revenues for the first nine months of the financial year amounted to $221.4 million (£105.0), 6.9 per cent less than during the same period a year earlier; this decrease was again attributed to weaker export sales of Sumo Firenza tyres and mining tyres. Gross profit rose 3.9 per cent to $50.4 million (£23.9) and the gross profit margin increased from 20.4 per cent to 23.0 per cent. Net profit increased 0.38 per cent to $6.1 million (£2.9), and earning per share amounted to $2.59 (£1.23).