Delticom reports successful Q1

ERJ staff report (LMH)

Hanover, Germany -- First quarter revenues at online tyre dealer Delticom have increased this year despite lower levels of winter snowfall leading to initial decreased demand, the company said in its preliminary results figures.

Revenue at the company was up 14.6 percent to euro 85.4 million, and EBIT was euro 6.1 million, up 4.6 percent from the previous year. Revenues in the e-commence division were up year-on-year by 13.9 percent to euro 80.5 million, and in the wholesale division up 28.6 percent to euro 4.8 million.

Delticom said that sales were initially weaker in the first quarter due to a lower amount of snowfall this winter than in 2010. On top of this, Easter does not fall until the second half of April this year and traditionally many drivers change to their summer tyres before this holiday, the company said.

Gross profit in the first quarter was up 15 percent to euro 63 million, and Delticom said that despite rising purchasing prices and supply bottlenecks, it was able to cushion the hikes by purchasing early.

Personnel expenses at the company totaled euro 1.7 million, while other operating expenses were euro 15.4 million in the past quarter, up 16.7 percent from the previouus year. Delticom said transportation costs were the main expense.

Frank Schuhardt, cfo, said, “The success seen in the equivalent quarter of last year placed the bar very high. So of course that makes me all the more pleased to see that Delticom has managed to once again increase revenues and its result. We're absolutely on track.”

The German firm predicted that 2011 would see relatively more summer tyre sales happen in the second quarter. And for 2011, Delticom AG's said it continues to anticipate an increase in revenues of approximately 10 percent, with an EBIT margin around one percent lower than in 2010.

The full report for the first quarter of 2010 is due to be published on 10 May.

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Press release from Delticom