GURGAON, India (May 16, 2014) — Apollo Tyres Ltd. reported double-digit growth in operating and net profit for the year ended March 31 on 4-percent higher sales.
Apollo Tyres Chairman Onkar S. Kanwar said the revenue increase resulted from better product and customer mix across the firm's geographical regions. In particular, ne noted the commercial vehicle segment in India recovered after a down year in 2012-13 and car sales in Europe have risen continuously for the last three quarters.
Pre-tax operating income rose 43.4 percent to $204.3 million, while net earnings surged 63.9 percent to $166.7 million. Sales improved to $2.22 billion despite a nearly $40 million drop in sales at the South African business, brought about by the sale last year of Apollo's Dunlop-brand business throughout Africa and parts of the Middle East to Sumitomo Rubber Industries Ltd.
Separately, Apollo's board of directors approved an investment of about $685 million to build a plant in eastern Europe to support the firm's business in Europe, which grew 31 percent last year to more than $650 million.
Recent measures the company took to support its global growth aspirations include:
- Securing a 3-year partnership with Manchester United Football Club for India and the United Kingdom;
- Establishing Thailand as its operations hub for the ASEAN region;
- Establishing a sales presence in Malaysia, Qatar and Jordan; and
- Introducing the Vredestein brand of designer premium tires into India.
Apollo did not comment in the earnings report on its failed merger/takeover of Cooper Tire & Rubber Co. It did note expenses of about $12 million for the year related to the proposed acquisition, a sum that was offset by the profit on the sale of the Dunlop-related assets in Africa.