14.11.2011
Financial Performance of Tire Company Dębica S.A. in Q3 2011
Record high sales revenues up by almost 39 per cent<br /> <br /> In Q3 2011 Tire Company Debica S.A. generated sales revenues totaling PLN 717 million i.e. up by 38.9 per cent than those recorded in very good Q3 2010. Sales generated record-high operating profit totalling PLN 59.9 million, up by PLN 22.8 million i.e. by 61.6 per cent compared to Q3 of the previous year, whereas net profit totaled PLN 32.6 million.
In Q3 2011 Tire Company Debica S.A. generated sales revenues totaling PLN 717 million i.e. up by 38.9 per cent than those recorded in very good Q3 2010. Sales generated record-high operating profit totalling PLN 59.9 million, up by PLN 22.8 million i.e. by 61.6 per cent compared to Q3 of the previous year, whereas net profit totaled PLN 32.6 million.
Sales revenues at the end of Q3 2011 totaled PLN 1 778.2 million, up by 33.7 per cent, compared to the same period in the previous year. In Q3 2011 the Company’s operating profit on a year-to-date basis totaled PLN 111.4 million and was up by PLN 37.4 per cent, whereas net profit that totaled PLN 75.7 million was up by PLN 15.0 million i.e. up by 24.8 per cent compared to three quarters of the previous year.
„This year our Company closes another quarter with excellent financial performance, up by almost 40 per cent compared to the same period in 2010.The tribute should go to all associates of Tire Company Dębica S.A., but it was also thanks to pursued strategy with the cornerstone being cost efficiency, very good products meeting high requirements of drivers as well as pursued investment policy. We are very proud of such excellent financial performance, but at the same time they stimulate us to continue intensive work so that in ever changing market environment subsequent results of the Company were equally good” – said Jacek Pryczek, President of Management Board of Tire Company Dębica S.A.
Q3 2011 characterized by strong fluctuations of Euro and USD exchange rates, which led to the situation where foreign exchange losses and costs of revaluation of derivatives were up by PLN 12.2 million and PLN 14.2 million respectively compared to Q3 of the previous year. The financial activity result was negative and it totaled minus PLN 19.2 million and was down by PLN 27.0 million. At the end of Q3 2011 the financial activity result on a year-to-date basis was negative and it totaled minus PLN 17.1 million and was down by PLN 11.7 million compared to the same period in the previous year.
At the end of Q3 2011 the Company’s net profit on a year-to-date basis totaled PLN 75. million and was up by PLN 15.0 million i.e. by 24.8 per cent i.e. up by 24.8 per cent compared to three quarters of 2010. Net profit in Q3 2011 was down by PLN 3.4 million i.e. by 9.6 per cent, due to high foreign exchange losses and high costs of revaluation of derivatives, despite the fact that operating profit was up by 61.6 per cent.
In Q3 2011 sales revenues that totaled PLN 717 million were achieved due to sales revenues totaling PLN 180.1 million generated by the sales to the Goodyear Group entities where sales volume and unit prices were up. Meanwhile gross margin on the sales to related entities totaled PLN 74.3 million i.e. up by PLN 21.9 million, which was 41.7 per cent.
In Q3 2011 the export sales totaled PLN 560 million and accounted for 78.1 per cent of sales in value terms, with 99.8 per cent of exports sold to the Goodyear Group related entities. In the same period the domestic sales amounted to PLN 157 million, of which 62.6 per cent was the sales to the related entity, which was Goodyear Dunlop Tires Polska. Total sales to Goodyear Group’s related entities totaled PLN 657.0 million and accounted for 91.6 per cent of total sales in value terms and for 92 per cent of total sales in tonnage terms.
Significant operating profit growth was achieved despite extremely high raw material prices in the global markets. Compared to Q3 2010 the unit production costs of products sold went up by 15 per cent, and in Q3 2011 up by 17 per cent on a year-to-date basis. The growth would have been higher if not the introduction of additional savings in non-raw material production costs.
In Q3 2011 the Company’s fixed assets were up by PLN 21.1 million. Due to intensification of the investment process the Company’s tangible fixed assets value was up by PLN 23.5 million. Meanwhile the intangible assets were down by PLN 0.5 million, whereas long-term financial assets (derivatives) were down by PLN 3.4 million. The Company’s current assets were up by PLN 149.2 million. The Company’s receivables were up by PLN 166.9 million, which was due to dynamic growth of tire sales, meanwhile inventory was down by PLN 39.7 million. Cash assets were up by PLN 46.2 million, while other cash assets were up by PLN 0.4 million. Other short-term financial assets were down by PLN 23.7 million, including PLN 22.5 million related to bills of exchange. Short-term prepayments were down by PLN 0.7 million. At the end of September 2011 the Company assets totaled PLN 1 645.3 million and were up during Q3 by PLN 170.3 million.
In Q3 2011 the current account overdraft facility debt was up by PLN 13.3 million. Other short-term liabilities were up by PLN 118.5 million. The provisions for liabilities and long-term liabilities were up by PLN 3.1 million and PLN 2.8 million respectively. All Company’s trade payables are paid at maturity. Net profit in Q3 2011 totaled PLN 32.6 million and the Company’s total assets were up by PLN 170.3 million.
In Q3 2011 the operational cash flows were positive and totaled PLN 76.3 million. Capital expenditures totaled PLN 41.6 million.
Financial activities generated positive cash flow of PLN 11.5 million, of which PLN 13.3 million was due to higher utilization of the current account overdraft facility. The interest expense was PLN 1.3 million, whereas lease payments amounted to PLN 0.5 million. In Q3 2011 the net cash flows totaled 46.2 million. In Q3 2011 the cash balance rose by PLN 46.2 million, from the opening balance of PLN 27.7 million at the end of June to the closing balance of PLN 73.9 million at the end of September 2011.
Sales revenues at the end of Q3 2011 totaled PLN 1 778.2 million, up by 33.7 per cent, compared to the same period in the previous year. In Q3 2011 the Company’s operating profit on a year-to-date basis totaled PLN 111.4 million and was up by PLN 37.4 per cent, whereas net profit that totaled PLN 75.7 million was up by PLN 15.0 million i.e. up by 24.8 per cent compared to three quarters of the previous year.
„This year our Company closes another quarter with excellent financial performance, up by almost 40 per cent compared to the same period in 2010.The tribute should go to all associates of Tire Company Dębica S.A., but it was also thanks to pursued strategy with the cornerstone being cost efficiency, very good products meeting high requirements of drivers as well as pursued investment policy. We are very proud of such excellent financial performance, but at the same time they stimulate us to continue intensive work so that in ever changing market environment subsequent results of the Company were equally good” – said Jacek Pryczek, President of Management Board of Tire Company Dębica S.A.
Q3 2011 characterized by strong fluctuations of Euro and USD exchange rates, which led to the situation where foreign exchange losses and costs of revaluation of derivatives were up by PLN 12.2 million and PLN 14.2 million respectively compared to Q3 of the previous year. The financial activity result was negative and it totaled minus PLN 19.2 million and was down by PLN 27.0 million. At the end of Q3 2011 the financial activity result on a year-to-date basis was negative and it totaled minus PLN 17.1 million and was down by PLN 11.7 million compared to the same period in the previous year.
At the end of Q3 2011 the Company’s net profit on a year-to-date basis totaled PLN 75. million and was up by PLN 15.0 million i.e. by 24.8 per cent i.e. up by 24.8 per cent compared to three quarters of 2010. Net profit in Q3 2011 was down by PLN 3.4 million i.e. by 9.6 per cent, due to high foreign exchange losses and high costs of revaluation of derivatives, despite the fact that operating profit was up by 61.6 per cent.
In Q3 2011 sales revenues that totaled PLN 717 million were achieved due to sales revenues totaling PLN 180.1 million generated by the sales to the Goodyear Group entities where sales volume and unit prices were up. Meanwhile gross margin on the sales to related entities totaled PLN 74.3 million i.e. up by PLN 21.9 million, which was 41.7 per cent.
In Q3 2011 the export sales totaled PLN 560 million and accounted for 78.1 per cent of sales in value terms, with 99.8 per cent of exports sold to the Goodyear Group related entities. In the same period the domestic sales amounted to PLN 157 million, of which 62.6 per cent was the sales to the related entity, which was Goodyear Dunlop Tires Polska. Total sales to Goodyear Group’s related entities totaled PLN 657.0 million and accounted for 91.6 per cent of total sales in value terms and for 92 per cent of total sales in tonnage terms.
Significant operating profit growth was achieved despite extremely high raw material prices in the global markets. Compared to Q3 2010 the unit production costs of products sold went up by 15 per cent, and in Q3 2011 up by 17 per cent on a year-to-date basis. The growth would have been higher if not the introduction of additional savings in non-raw material production costs.
In Q3 2011 the Company’s fixed assets were up by PLN 21.1 million. Due to intensification of the investment process the Company’s tangible fixed assets value was up by PLN 23.5 million. Meanwhile the intangible assets were down by PLN 0.5 million, whereas long-term financial assets (derivatives) were down by PLN 3.4 million. The Company’s current assets were up by PLN 149.2 million. The Company’s receivables were up by PLN 166.9 million, which was due to dynamic growth of tire sales, meanwhile inventory was down by PLN 39.7 million. Cash assets were up by PLN 46.2 million, while other cash assets were up by PLN 0.4 million. Other short-term financial assets were down by PLN 23.7 million, including PLN 22.5 million related to bills of exchange. Short-term prepayments were down by PLN 0.7 million. At the end of September 2011 the Company assets totaled PLN 1 645.3 million and were up during Q3 by PLN 170.3 million.
In Q3 2011 the current account overdraft facility debt was up by PLN 13.3 million. Other short-term liabilities were up by PLN 118.5 million. The provisions for liabilities and long-term liabilities were up by PLN 3.1 million and PLN 2.8 million respectively. All Company’s trade payables are paid at maturity. Net profit in Q3 2011 totaled PLN 32.6 million and the Company’s total assets were up by PLN 170.3 million.
In Q3 2011 the operational cash flows were positive and totaled PLN 76.3 million. Capital expenditures totaled PLN 41.6 million.
Financial activities generated positive cash flow of PLN 11.5 million, of which PLN 13.3 million was due to higher utilization of the current account overdraft facility. The interest expense was PLN 1.3 million, whereas lease payments amounted to PLN 0.5 million. In Q3 2011 the net cash flows totaled 46.2 million. In Q3 2011 the cash balance rose by PLN 46.2 million, from the opening balance of PLN 27.7 million at the end of June to the closing balance of PLN 73.9 million at the end of September 2011.