Amtel-Vredestein N.V. and Nokian Tyres P.L.C. both released financial results for the third quarter and nine-month period ending Sept. 30.
Enschede, Netherlands-based Amtel-Vredestein N.V. reported growth in both sales and pre-tax profits for the three- and nine-month periods ending Sept. 30, but the net result was negative for both.
The Russian-Dutch venture reported a net loss of $7 million in the three months, taking the nine-month loss to $22 million. The quarterly loss is an improvement over the $12 million loss reported a year ago, but net losses over the nine months have doubled from $11 million last year.
The net losses conceal a picture of strong growth at the company. Gross margins are running at more than 20 percent while operational earnings have increased from breakeven a year ago. The company said it expects the net result in the fourth quarter to be positive, bringing the year's loss to $10 milllion to $12 million overall.
Net sales increased 19 percent in the first nine months of 2006 to $548 million. Pre-tax operating earnings for the first nine months of 2006 were up 36 percent to $64 million.
Amtel-Vredestein said net revenue from passenger tire sales grew 39 percent to $332 million from $239 million in the first nine months and represented 61 percent of total sales during the period.
Nokia, Finland-based Nokian Tyres P.L.C. reported a 19.8-percent gain in sales to $677.4 million for the first nine months of the year as the company said it gained market share in both winter and summer tires. Nokian's operating profit also rose 31.5 percent to $108.6 million in the nine months as net profit gained 26.7 percent to $75.2 million.
For the third quarter, Nokian's sales were up 22.8 percent to $234.1 million as operating income for the period nearly doubled to $46.9 million. Net income for the quarter was $34.9 million, up from $17.1 million last year.
Nokian expects sales growth in the fourth quarter to be more moderate than the nine months because of good winter tire pre-sales in the second and third quarters.
In Nokian's passenger car tire segment, sales in the quarter rose 27.5 percent to $154.9 million as operating profit grew 49.7 percent to $44.7 million. Segment sales in the nine months rose 22.5 percent to $436.7 million as operating profit increased 19.7 percent to $102.8 million.