SINGAPORE (Dec 7): Stamford Tyres reported a 10.4% rise in 2Q18 earnings to $1.62 million compared to $1.47 million in 2Q17.
Total revenue for the second quarter ended October was 2.58% higher at $59.9 million from $58.4 million a year ago, mainly due to improved sales in Australia and the South East Asian markets.
Total operating expenses increased by 6.8% to $14.9 million in 2Q18, compared to $14.0 million in 2Q17, mainly due to higher operating lease rentals, higher foreign exchange costs and allowance for doubtful trade receivables.
Operating lease rentals were up by 21.4% to $1.37 million from $1.12 million in the previous year.
Other operating expenses increased 50.3% to $1.47 million compared to $0.98 million a year ago.
Profit before taxation stood at $2.14 million, 0.7% lower than $2.15 million recorded in 2Q16.
Taxation for the quarter was 24.5% lower at $518,000 compared to $686,000 last year.
Wee Kok Wah, president of Stamford Tyres says, “The operating environment in the tyre business remains challenging as a result of global oversupply and intense competition. We continue to focus on growing our sales of car tyres and SSW wheels, as well as truck tyres and mining tyres. We are also focusing on improving our sales productivity and value-added segments such as Stamford Tyres Mart retail chain and truck centres.”
Shares in Stamford Tyres closed at 34 cents on Thursday.
