by millionairemind » Wed Mar 17, 2010 9:54 am
Published March 17, 2010
Stamford Tyres sees net profit highly revved up
By JOYCE HOOI
STAMFORD Tyres Corporation Ltd has posted a quantum leap in net profit for its third quarter in FY2010 ended Jan 31, from $69,000 the year before to $2.3 million.
This was fuelled by a 29.5 per cent growth in revenue year-on-year from $62.9 million to $81.5 million.
Expenses for the quarter were also unable to put the brakes on the tyre distributor's bottom line even though they rose 25.2 per cent to $78.3 million.
While gross profit for the quarter stood at $18.8 million, a 19 per cent increase over the $15.8 million in profit for Q3 FY2009, Stamford Tyres' gross profit margin shrank from 25.1 per cent to 23.1 per cent.
'The decline was due to higher tyre purchase prices worldwide,' the group said yesterday.
For the year-to-date, net profit grew five-fold from $1.1 million to $5.2 million. The dip in revenue of 0.2 per cent to $227.2 million for the nine months ended Jan 31 was offset by a larger dip in total expenditure of 2.1 per cent.
Earnings per share for the group stood at 1.02 cents and 2.26 cents for the quarter and year-to-date respectively, up from 0.03 cent and 0.46 cent for the corresponding periods a year ago.
'The group expects tougher market conditions in the fourth quarter as tyre manufacturers continue to increase prices due to higher cost of raw materials. In addition, higher global aluminium prices may impact our wheels business,' it said yesterday.
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