ERJ staff report (DS)
Hannover, Germany -- In a challenging environment, Europe's leading online tyre retailer, Delticom AG posted reduced sales and profits for the six months to June 2012.
First half group revenues declined by 2.5 percent to â‚¬ 193.3 million (H1 11: â‚¬ 198.3 million). Profit (EBIT) in the reporting period decreased by 29.2 percent to â‚¬ 13.2 million (H1 11: â‚¬ 18.7 million). This translates into an EBIT margin (EBIT in percent of revenues) of 6.9 percent (H1 11: 9.4 percent).
Despite difficult market conditions Delticom was able to cut back summer tyre stocks significantly. As a result, the company currently holds fewer summer tyres on stock than in the preceding years.
The company said, â€œAfter the season had already experienced a difficult start due to poor weather
conditions, second quarter summer tyre sales fell yet again significantly short
of tyre trade expectations.â€
The company said weak demand in Europe has lead to reduced selling prices
Business has lagged behind expectations so far this year. The Management has therefore decided to reduce the growth target for full-year revenues to +5Â° percent. EBIT margins above 9Â° percent are attainable only in the event of very favourable winter weather, as the higher fixed costs will continue to burden earnings in the second half of the year.
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Press release from Delticom