BOULDER CITY, Nev. (May 17, 2016) — Polyurethane tire developer Amerityre Corp. reported net income of $34,656 for the quarter ended March 31, just the second profitable quarter in the company's 19-year history.
Sales, however, fell 21.4 percent to $936,612 on the negative effects of a depressed agricultural economy in North America, Amerityre said.
“Our third quarter results, achieved despite a very challenging economic environment, reflect the success of our organization in executing our business plan,” CEO Michael Sullivan, said.
“We continue to push forward with the development and sale of higher margin products, while remaining vigilant in controlling our costs. Sales revenues were less than planned, but our efforts to restructure the company to a leaner and more focused organization allowed us to earn a profit during the quarter.”
Amerityre reported a net profit in the fourth quarter of fiscal 2015, but fell back into the red in the intervening two quarters since.
In its 10-Q report for the third quarter, Amerityre noted it expected stronger sales of agricultural pivot tires in the period and said its forecast for the fourth quarter “anticipates continued depressed agricultural tire sales, due to the continuation of depressed farm income as well as the seasonal shift of farmer focus on planting crops rather than purchasing equipment.
“Our experience is consistent with the reports provided by large agricultural equipment suppliers,” the company said, “several who have announced expectations for another challenging year in 2016.”
Despite growing market acceptance of its pivot tire and seeder tire technologies, financial considerations have forced potential agricultural tire customers to delay purchases, the company added.
Amerityre plans to relaunch its forklift tire line — withdrawn in 2013-14 for performance-related issues — in the fourth quarter.
For the nine months ended March 31, Amerityre was $271,861 in the red on 19.8-percent lower sales of $2.87 million. The net loss was a 19.3-percent improvement over the fiscal 2015 nine-month period.
The firm's cumulative loss over 19-plus years is $65 million.