06.11.2015
Better EBIT and lower costs than in the first 3 quarters of 2014
Financial results of Tire Company Dębica S.A. for the first 3 quarters of 2015<br />
Tire Company Dębica S.A., Poland’s leading producer of car and truck tires, generated sales revenue in the 3rd quarter of 2015 of PLN 471.5 million, down 3.7% year-on-year but 2.9% higher than in the 2nd quarter of 2015. Revenue in the first nine months of 2015 was 7.1% lower than in the same period of 2014.
EBIT in the 3rd quarter of this year was PLN 26.8 million, 6.0% lower than in the same quarter of last year. In the first nine months of 2015, EBIT was PLN 108 million, an increase of 1.5% compared to the first three quarters of 2014. Net profit in 3Q 2015 was PLN 29.6 million, down 3.6% year-on-year. In the first nine months of 2015, net profit was 10.2% lower than in the same period of 2014; this was strongly influenced by the creation of a deferred tax provision in the amount of PLN 9.8 million in connection with operations in the territory of the Euro-Park Mielec Special Economic Zone.
Sales to entities from the Goodyear Group accounted for 94.0% of total sales in the 3rd quarter of 2015, as compared to 89.6% in the 3rd quarter of 2014. Sales to unrelated entities fell in the 3rd quarter of 2015 by 44.2% year-on-year. A decline in revenue on sales to unrelated units has been observed since the beginning of this year. In the first nine months such sales were 43.5% lower than in the same period of 2014. This contributed significantly to the decline in total sales revenue. Sales to unrelated entities fell from 12.2% of total sales in January–September 2014 to 7.4% in the first three quarters of 2015.
Unit production costs fell in the first three quarters of 2015 by 2.8% year-on-year.
In the first three quarters of 2015, costs of sales and general management totalled PLN 57.7 million, down 23.8% year-on-year. Such costs were equal to 4.1% of sales, versus 5.0% in the first three quarters of 2014.
Financial results of Tire Company Dębica S.A. in the 3rd quarter of 2015 and the first three quarters of 2015
Capital expenditures by Tire Company Dębica S.A. in the first nine months of this year were PLN 34.4 million. They were devoted among other things to modernization of the production lines for truck tires and expansion of the product line in order to secure higher margins for the company and increased competitiveness in this segment.
Stanisław Cieszkowski, CEO of Tire Company Dębica S.A., commented: “The market potential in both Poland and Central & Eastern Europe in the 3rd quarter of 2015 was higher than in the same period of 2014. This applies in particular to the segment of truck tires, and that is the case throughout Europe. On the other hand, the decline in the market potential in Poland in the segment of tires for passenger cars and vans in the first nine months of 2015 by 3% year-on-year unfavourably impacted the sales revenue we generated during this period. The demand for winter tires in Poland was lower than in the 3rd quarter of 2014, which was connected with the relatively high level of inventories maintained by customers. There was also a continuing oversupply of tires on the Polish market, exerting downward pressure on prices. Despite this combination of unfavourable market conditions, the EBIT result achieved by the company in the first nine months of 2015 was higher year-on-year, thanks to optimization of production costs and strict control of costs of sales and general management.”
EBIT in the 3rd quarter of this year was PLN 26.8 million, 6.0% lower than in the same quarter of last year. In the first nine months of 2015, EBIT was PLN 108 million, an increase of 1.5% compared to the first three quarters of 2014. Net profit in 3Q 2015 was PLN 29.6 million, down 3.6% year-on-year. In the first nine months of 2015, net profit was 10.2% lower than in the same period of 2014; this was strongly influenced by the creation of a deferred tax provision in the amount of PLN 9.8 million in connection with operations in the territory of the Euro-Park Mielec Special Economic Zone.
Sales to entities from the Goodyear Group accounted for 94.0% of total sales in the 3rd quarter of 2015, as compared to 89.6% in the 3rd quarter of 2014. Sales to unrelated entities fell in the 3rd quarter of 2015 by 44.2% year-on-year. A decline in revenue on sales to unrelated units has been observed since the beginning of this year. In the first nine months such sales were 43.5% lower than in the same period of 2014. This contributed significantly to the decline in total sales revenue. Sales to unrelated entities fell from 12.2% of total sales in January–September 2014 to 7.4% in the first three quarters of 2015.
Unit production costs fell in the first three quarters of 2015 by 2.8% year-on-year.
In the first three quarters of 2015, costs of sales and general management totalled PLN 57.7 million, down 23.8% year-on-year. Such costs were equal to 4.1% of sales, versus 5.0% in the first three quarters of 2014.
Financial results of Tire Company Dębica S.A. in the 3rd quarter of 2015 and the first three quarters of 2015
Capital expenditures by Tire Company Dębica S.A. in the first nine months of this year were PLN 34.4 million. They were devoted among other things to modernization of the production lines for truck tires and expansion of the product line in order to secure higher margins for the company and increased competitiveness in this segment.
Stanisław Cieszkowski, CEO of Tire Company Dębica S.A., commented: “The market potential in both Poland and Central & Eastern Europe in the 3rd quarter of 2015 was higher than in the same period of 2014. This applies in particular to the segment of truck tires, and that is the case throughout Europe. On the other hand, the decline in the market potential in Poland in the segment of tires for passenger cars and vans in the first nine months of 2015 by 3% year-on-year unfavourably impacted the sales revenue we generated during this period. The demand for winter tires in Poland was lower than in the 3rd quarter of 2014, which was connected with the relatively high level of inventories maintained by customers. There was also a continuing oversupply of tires on the Polish market, exerting downward pressure on prices. Despite this combination of unfavourable market conditions, the EBIT result achieved by the company in the first nine months of 2015 was higher year-on-year, thanks to optimization of production costs and strict control of costs of sales and general management.”