Financials
Third Quarter Results Financial Statement And Related Announcement
Financials Archive
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Unaudited Third Quarter 2010 Financial Statements
Profit & Loss
Review of Performance
3Q2010 (November 2009 to January 2010)
The Group experienced both revenue and profit growth for the third Quarter ended 31 January 2010 (3Q2010), compared to 3Q2009. The results for the same period last year was affected by the financial crisis.
Revenue
Revenues from sales of tyre and wheel products was S$81.5 million, a growth of 29.5% over 3Q2009.
Gross Profit
Gross profit was S$18.8 million, compared to S$15.8 million in 3Q2009.
Gross profit margin was 23.1% compared to 25.1% in 3Q2009. The decline was due to higher tyre purchase prices worldwide.
Operating Expenses
The Group's operating cost increased by 8.3%.
Salary and employee benefits were up by 34.6% due to an increase in the variable component of salary and an increase in manpower in South Africa. Marketing and distribution cost were up by 5.8%, this increase is in line with revenue growth.
Net Profit
The Group achieved a net profit of S$2.4 million compared to S$0.1 million in 3Q2009.
9M2010 (May 2009 to January 2010)
Revenue
The Group's revenue for the nine months of the current fiscal year (9M2010) was $227.2 million. This is similar to the $227.6 million achieved in 9M2009.
Gross Profit
Gross profit was S$49.0 million compared to S$54.6 million a year earlier. The decline was due to heightened market competition and pricing pressures worldwide as well as lower sales from the Group's wheel plant in Thailand.
Gross profit margin was 21.6% compared to 24.0% the year before.
Operating Expenses
Total operating expenses remain at S$40.0 million excluding foreign exchange gains/losses.
Net Profit
The Group returned a net profit of S$5.3 million for 9M2010, compared to S$1.2 million for the same period a year ago. This represents a 354% increase.
Financial position
Inventories at 31 January 2010 stood at S$91.8 million compared to S$96.9 million at end of April 2009.
Trade receivables were higher at S$82.5 million compared to S$72.3 million in line with higher sales.
Cash and cash equivalents at close of the reporting period amounted to S$7.1 million compared to negative cash position of S$4.9 million a year earlier.
Commentary
The Group expects tougher market conditions in the fourth quarter as tyre manufacturers continue to increase prices due to higher cost of raw materials. In addition, higher global aluminium prices may impact our wheels business.
The Group will continue to actively manage its operating costs, restructure operations where necessary and optimize its product mix.
Balance Sheet
