SINGAPORE (May 14): Tyre maker YHI International saw its earnings surge to $4.5 million for the 1Q ended March, from $1.8 million a year ago.
This was mainly due to the one-off gain on disposal of $3.1 million from the sale of its freehold warehouse and office building at its Australia subsidiary.
1Q18 revenue dipped 1.5% to $107.5 million, from $109.1 million a year ago.
This was mainly due to lower sales in its distribution business, which accounted for 71% of the group’s total turnover, partially mitigated by higher sales from its wheel manufacturing business.
Distribution revenue fell 6.2% to $76.3 million, mainly due to lower sales in its tyre and wheel division.
As at end March, cash and cash equivalents stood at $59.9 million.
Looking ahead, YHI says the overall business operating environment is expected to remain challenging in view of the intense competition in the regions it operates.
It expects the high aluminium prices and weak US dollar to continue to impact the margins of its manufacturing business in 2018, while its distribution business is expected to continue to face challenges amid overcapacity in the tyre market.
Shares of YHI closed half a cent lower at 44.5 cents on Monday.
