HADERA, Israel (April 5, 2005) — Alliance Tire Co. (1992) Ltd. posted net earnings of $900,000 last year, breaking a skein of four straight years of losses.
Alliance said it also posted significant gains in operating earnings and sales grew 29.7 percent to $129.3 million. Sales from exports accounted for 76 percent of revenues. That was up from 71 percent in 2003 as exports outgrew domestic sales 39 to 7 percent.
“The improvements we saw in 2004 reflect Alliance's greater efficiency, expansion into new markets and opportunities to serve key markets that are experiencing tight supplies,” said Alliance President Joseph Anglister. The company is experiencing record sales in both North and South America, he added, without giving specifics.
Alliance's growth occurred despite higher raw materials costs and fluctuating currency rates, Mr. Anglister said. The latter's effect on company loans caused the firm to fall into the red in the fourth quarter despite a rise in operating income.
Production increased 20.9 percent to 38,090 metric tons. Alliance makes agricultural, multi-purpose and industrial tires for export and passenger and light truck tires for the local market.