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Stamford Tyres posts 58% drop in Q3 net profit due to higher costs

MAINBOARD-LISTED Stamford Tyres, which distributes tyres and wheels to over 90 countries, on Monday posted a third-quarter net profit of S$0.95 million, down 58.1 per cent from its year-ago net profit of S$2.3 million.

Earnings per share for the quarter fell to 0.40 Singapore cent from 0.97 Singapore cent last year.

No dividend has been declared for the period, unchanged from the preceding year.

Nonetheless, third-quarter revenue rose 3.6 per cent to S$61.9 million in FY18. This came on the back of new sales in North Asia, Stamford Tyres said.

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For the three months ended Jan 31, 2018, gross profit fell to S$14 million, from S$15.4 million in the previous year, while gross profit margin decreased to 22.6 per cent, from 25.8 per cent last year.

This was mainly due to higher cost of sales in tyres, and higher costs of wheel production, the company said.

The counter last traded 2.86 per cent, or one Singapore cent higher to close at 36 Singapore cents apiece on Monday.