Winter tyre profits boost Delticom results

ERJ staff report (DS)

Hanover, Germany - 2010 was a successful year for Delticom, Europe's leading online tyre dealer,. According to the annual report released yesterday, revenues in the fiscal year increased by 34.8 percent to euro 419.6 million and EBIT by 60.1 percent to euro 47.1 million.

The main reason for the positive business development was the unusually favourable winter weather in the closing quarter. Heavy snowfalls caused serious traffic delays, especially in countries where the winter is usually quite mild. The surge in demand was intensified by new regulations in Germany, making winter tyres mandatory. At the same time tyre supply fell substantially short of demand, because tyre manufactures had ramped up their production only relatively late in the aftermath of the recession. As a result, winter tyre prices increased sharply across Europe, driven by market-wide scarcity. In the closing quarter, revenues climbed owing to positive volume and price effects to euro 162.6 million - a plus of 48.2 percent year-on-year over previous year's value of euro 109.7 million.

Over the course of the year, selling price levels developed favourably, the mix was stable and volumes developed well. All in all, Delticom was able to generate revenues of euro 419.6 million, a plus of 34.8 percent from prior-year's euro 311.3 million. Revenues in the E-Commerce division were up year-on-year by 36.2 percent, from euro 296.5 million to euro 403.7 million. The revenues of the Wholesale division lifted by 7.6 percent to euro 15.9 million, after prior-year revenues of euro 14.8 million. Other operating income increased in 2010 in line with revenues by 33.3 percent to euro 5.8 million (previous year: euro 4.3 million).

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Press release from Delticom