Stamford Tyre earnings jump 41% in 12 months

ERJ staff report (DS)

Singapore -- Stamford Tyres Corp. Ltd said net profit for the 12 months ended 30 April 2011 jumped 41.4 percent to

S$13.3 million (euro 7.55 million) as better sales mix of high performance tyres and earthmover tyres offset rising

tyre costs, while South Africa, North Asia and South East Asia put in strong sales

performances.

Revenues in the year rose 10 percent to S$341.4 million (euro 194 million) from S$310.2 million. Gross profits increased by almost 20 percent to S$79.5 million (euro 45 million) from S$66.5 million, leading to a gross margin of 23.3 percent.

The Group said its star performer in FY2011 was South Africa where sales outpaced the Group's

overall revenue growth. The region saw its turnover grow 24.9 percent YOY to S$36.2 million from

S$29.0 million. Sales contribution from South Africa as a percentage of group turnover is

10.6 percent versus 9.4 percent a year ago.

“Our entry into South Africa proves to be a strategic move which enhances our top and

bottom line. We would continue to aggressively grow the South African market by

securing higher allocations of the well received Falken brand from our strategic

shareholder Sumitomo Rubber Industries3 to meet growing local demands. At the same

time, we are also working closely with Sumitomo to further expand our other markets." said Wee Kok Wah, President & CEO of Stamford Tyres.

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Press release from Stamford