Sailun expects Q1 upturn after profit-drop in 2017
22 Feb 2018
Qingdao, China – Sailun has pegged its 2017 annual net profit at €40 million (316 million yuan), representing a 13% decline from 2016.
Net profit excluding non-recurring elements dropped 18% to €38 million, the company announced in February. Revenue for the year, however, jumped 22% to €1.7 billion.
“Prices of the company’s main raw materials rose significantly over the first half of 2017, whereas tire price was lagging behind, rising at a slower rate,” said the announcement.
The second half of 2017 saw a sharp year-on-year rise in the company’s net profit, but still not enough to make up for the whole year, the announcement added.
According to another announcement by Sailun in February, the company estimates its Q1 2018 net profit would range from €13 million to €15 million, compared with €7 million net loss in Q1 2017.
“Raw material prices have stabilized during the period…and the production and sales volume of our Vietnam plant have been increasing,” said the announcement. “We have been actively expanding into overseas markets and expects a substantial boost in tire products’ profit margin.”