HADERA, Israel (June 3, 2005) — Alliance Tire Co. (1992) Ltd. reported a 59.4-percent improvement in its pre-tax profit for the first quarter as production output increased 22.3 percent.
Alliance reported profit before taxes of $5.1 million—11.4 percent of sales—up from $3.2 million in 2004's first quarter. The Hadera-based tire maker also reported a tax benefit of $4.1 million on its results, pushing net profit up to $9.2 million. With the nonrecurring tax benefit included, Alliance's net profit increased 187.5 percent.
Sales in the quarter rose 17.1 percent to $37.6 million from $32.1 million last year. Exports, which account for almost 80 percent of Alliance's business, grew 16.7 percent to $29.3 million. Local market sales also grew 18.6 percent in the quarter, the company said.
“We see a continued increase in the demand for our tires, which is reflected in an increase of our backlog orders (totaling) $18.2 million compared to $13.6 million in the first quarter of 2004,” said Joseph Anglister, president. “Our first-quarter profits are in step with our continuing growth, which has been the reward for our efforts to improve both our production efficiency and marketing.”