Profit drops at Ceat as rubber costs soar

ERJ staff report (LMH)

Mumbai - Net profit at Indian tyre company Ceat Ltd has gone down by 83 percent to Rs 2646 million (euro 40 million) for the fiscal year ended 31 March 2011, according to the company's annual report.

The company also suffered a net loss in the fourth quarter of Rs 1186 million. The losses have caused share prices at the company to fall. Escalating raw material prices, particularly natural rubber, impacted the profitability for the quarter, Ceat said.

For the year as a whole, the company reported consolidated sales of Rs 360239 million up from Rs 285042 million. Total income was Rs 364168 million. In the fourth quarter, Ceat's net sales were Rs 97828 million, up from Rs 77283 million during the same period last year.

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Press release from Ceat Ltd