ENSCHEDE, Netherlands (Aug. 5, 2013) — Apollo Vredestein B.V. reported double-digit growth in operating and net income for the fiscal year ended March 31 despite slightly lower sales revenue.
Apollo Vredestein, the European arm of India's Apollo Tyres Ltd., reported operating income of $79.7 million and net income of $60 million, gains of 20.7 and 27.7 percent, respectively, over the 2011-12 period.
Sales slipped 0.3 percent to $552.6 million, yielding operating and net income/sales ratios of 14.4 and 10.9 percent, respectively.
Apollo Vredestein said it managed to achieve stable net sales despite a "significant contraction" in the market. The firm's passenger and agricultural tire sales volumes fell 4 and 11 percent, respectively, but a better sales mix "resulted in higher average sales prices."
The European replacement consumer tire market was down 13 percent during the period, Apollo Vredestein said, With inventories at a high level, customers were not willing to order large numbers of summer tyres. A late start to the cold weather also translated into a poor winter season.
Apollo Vredestein represents about 23 percent of parent Apollo Tyres' global sales.
The business recently expanded its European distribution assets, opening a 236,750-sq.-ft. warehouse in Enschede, primarily to handle the distrbution of Apollo-branded tires imported from India. The center can hold around 50,000 tires.
This past year the company opened a global research and development center for passenger tires at its business and science park in Enschede.
The company revamped its R&D resources, concentrating consumer tire development and testing will be located in the Netherlands and commercial vehicle tires in India.