GURGAON, India (Feb. 12, 2014) — Apollo Tyres Ltd. reported double-digit gains in operating and net earnings for the quarter ended Dec. 31 despite $10 million in expenses connected with the termination of the merger with Cooper Tire & Rubber Co.
Apollo’s sales for the quarter rose 10.6 percent to $653 million despite lower revenues from the firm’s South African operation, which sold a portion of its business last year to Sumitomo Rubber Industries Ltd.
Net income shot up 87.2 percent to $62 million, or 9.5 percent of sales; operating income was up 51.2 percent to $113.5 million, or 17.4 percent.
For the nine months ended Dec. 31, net income rose 53.5 percent to $132.7 million on 4.4-percent higher sales of $1.87 billion. Operating earnings were up 29.8 percent to $274.1 million.
Commenting on the results, Apollo Chairman Onkar Kanwar said an improved and expanded product range in key markets helped generate incremental revenue gains for the quarter.
“I would like to compliment my team for achieving excellent numbers amidst such challenging circumstances across geographies,” he said. “This gives me confidence to invest in future growth for the company, decisions for which had been kept on hold for the past few months.”
Mr. Kanwar did not comment specifically on the termination of the proposed merger with Cooper.