Stamford Tyres posts 98% drop in 3Q earnings to $20,000

SINGAPORE (Mar 11): Stamford Tyres announced 3Q19 earnings declined by 97.90% to $20,000, compared to $953,000 in 3Q18.

This brings 9M19 earnings to $151,000, 96.64% lower than $4.50 million in 9M18.

Total revenue for the quarter was 14.21% lower at $54.1 million from $63.1 million a year ago.

The decline in turnover came as the group saw lower sales in South-east Asia and North Asia, while its joint ventures recorded lower sales in Hong Kong and India. Its India joint venture also posted a net loss for 9M19.

Total expenditure dropped by 13.27% to $53.9 million from $62.1 million last year.

Cost of goods sold declined by 14.62% to $40.9 million, compared to $47.9 million in the previous year.

As at end Dec, 2018, the group’s cash and cash equivalents stood at $13.6 million.

Looking forward, the group expects the operating environment in the tyre business to remain challenging, due to global oversupply and intense competition.

To mitigate this challenging environment, the group says it will continue to optimise its product mix, manage operating costs and build on its core markets in Southeast Asia.

Shares in Stamford Tyres closed at 29 cents on Monday.