Stamford Tyres Q2 FY19 net profit sinks 98.8% on higher costs

TYRE and wheels distributor Stamford Tyres Corp reported second-quarter net profit of just S$19,000, a near 99 per cent year-on-year plunge from S$1.62 million in FY18, due to higher costs. 

This was despite second-quarter revenue rising 7.94 per cent to S$63.72 million, on the back of new sales in North Asia.

Earnings per share fell to 0.01 Singapore cent from 0.69 Singapore cent a year ago.

Total expenditure increased 10.26 per cent to S$64.55 million owing partly to higher cost of goods sold and increased spending on marketing and distribution.

The Mainboard-listed firm reiterated that the operating environment will continue to be challenging as a result of the uncertain global economic outlook. 

No dividend has been declared for the period.

Stamford Tyre's counter closed unchanged at S$0.31 on Thursday before the announcement.