Stamford Tyres posts Q3 net profit of S$20,000 - down by 98%

MAINBOARD-LISTED Stamford Tyres Corp ran a flat in the third quarter, with its earnings nearly wiped out on business costs and joint ventures' showings, according to unaudited results out on Monday.

Net profit for the three months to Jan 31 came in at S$20,000, or 97.9 per cent lower than in the same period the year before, while revenue dropped by 14.2 per cent to S$54.1 million.

Besides the pinch from expenditure, which was brought down by 13.3 per cent, Stamford Tyres also took a hit from from a 56.8 per cent slump in contributions from its joint ventures to S$272,000.

The decline in turnover came as the group saw lower sales in South-east Asia and North Asia, while its joint ventures rang up lower sales in Hong Kong and India. Its India joint venture had also posted a net loss for the nine-month period.

Earnings per share stood at 0.01 Singapore cent, against 0.4 Singapore cent in the year prior.

For the nine months, Stamford Tyres' net profit was down by 96.6 per cent, to S$151,000, on a 2.5 per cent dip in revenue, to S$178.4 million.

"The operating environment in the tyre business remains challenging as a result of global over-supply and intense competition," said Stamford Tyres in its outlook statement, while affirming that it would build on its core markets in South-east Asia in the next 12 months.

No dividend was recommended, as the company makes its pay-out declarations at the end of the year.

The counter closed flat at S$0.29, before the results were released.