Stamford Tyres warns of Q2 and half-year loss

STAMFORD Tyres on Monday evening warned of a net loss for the second quarter and half year ended Oct 31, 2019, based on a preliminary review of its draft unaudited financial results.

The losses were mainly due to lower revenue arising from increased competition and oversupply in the tyre market, as well as a one-time expense relating to the closure of a loss-making operation in Australia.

For the first quarter ended July 31, Stamford Tyres posted a net profit increase of 12.5 per cent to S$126,000. Despite lower revenue, bottom line was lifted by a decrease in total operating expenses as well as an improvement in performance from its joint ventures.

Second quarter and half-year results will be announced on or before Dec 15. Shares in Stamford Tyres ended trading on Monday at 21.5 Singapore cents, down 4.44 per cent or one cent.