ERJ staff report (DS)
Beijing -- Total profits of seven large Chinese tyre makers for the first half of 2011 declined in comparison to a year ago, despite higher revenues.
Total sales increased by around 26 percent to yuan 23.234 billion (euro 2650 million), up from yuan 18.408 billion a year ago. However, net profits fell by 18 percent, to yuan 352 million, compard with yuan 432 million a year earlier. This means the combined net profit margin fell to 1.5 percent, from 2.4 percent. Slim margins by Western standards.
The seven tyre makers include Double Coin Holdings, Aeolus, Qingdao Double Star and ST Yellow Sea. Yellow Sea was th eonly one of the seven to report a loss.
A similar analysis of the steel cord business showed a simlar picture, with total revenues up by around 5 percent to yuan 6005 million (euro 685 million), from yuan 5747 million. Net profits declined to Yuan 576 million from yuan 774 million. Margins in the steelcord business were higher at 9.6 percent, down from 13.5 percent reported a year previously.
The three companies analysed were Xingda International, star technology and Fuxing.
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Report on CRIA website Chinese language
Above report auto-translated from Chinese