ERJ staff report (DS)
Hanover, Germany - Delticom AG, Europe's largest online tyre retailer said revenues in the three months to 31 March were flat compared to last year. Profits fell on higher fixed costs.
The company said, â€œDue to the lack of snow, sales of winter tyres lagged behind expectations at the start of the year. This was compounded by the fact that prior to Easter it was too cold for a good start into the changeover season. The low temperatures are likely to have prevented many drivers from making an early switch to summer tyres.â€
Quarterly revenues increased by 0.2 percent to â‚¬ 85.5 million (Q1/11: euro 85.4 million). Revenues in the E-Commerce division were up year-on-year by 0.5 percent, from euro 80.5 million to euro 80.9 million. The revenues of the Wholesale division decreased by 5.8 percent to euro 4.5 million, after prior-year revenues of euro 4.8 million.
EBIT fell to euro 3.4 million compared with euro 5.9 million a year earlier. The company blamed the decline on higher fixed costs.
The company said its forecast of 10 percent sales growth in the full year remains unchanged.
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Press release from Delticom