Tianjin, China – Machinery maker TST reported a 32 percent drop in half-year revenue to 126 million yuan (€16.7 million). Net loss remained stable at €3.2 million.
Global economic slowdown, domestic tire overcapacity, China’s tightening environmental regulations as well as the US anti-dumping tariffs have lead to plummeting orders for rubber machinery, said TST’s first-half report.
Boosting research and development, raising automation level and optimising product portfolio, “the company has significantly lowered operating costs and increased profit margins,” the report added.
Last year TST saw almost across-the-board rise in different segments’ gross margins, especially a double-digit increase for speciality rubber machinery to 31 percent.
“The company hopes to be in the black by the end of this year,” said TST's financial report.