JIAOZUO, China — Aeolus Tyre Co. Ltd. suffered a $30.4 million net loss for the first nine months of 2017 despite 4-percent higher sales.
The 2017 net loss contrasts with $9.5 million in net earnings during the same period in 2016, the Shanghai-listed company said.
Revenue throughout the period grew to $869 million, according to Aeolus' financial report released in early November. The Shanghai-listed company's share price dropped 10 percent in the days following the release.
"Fluctuating prices of natural rubber (NR) and other major feedstock, among other factors, have caused a 4-percent drop in our company's tire product price in Q3 2017 from Q2," said a company filing. In the third quarter alone Aeolus sold 1.9 million tires, generating $294 million in sales.
In early 2017, NR prices rocketed to $2,400 per metric ton, but in the third quarter oscillated to $1,800 per ton, the filing said.
Synthetic rubber saw a similar wave, with its price rapidly rising since 2016 year end to $3,825 per ton at mid-year before declining to $2,294 per ton in August.
Carbon black prices had a slow downward trajectory in the second quarter and early third quarter, but has been rising since September, representing a 60-percent jump from the beginning of this year, Aeolus said.
Steel cord prices also climbed by 20 to 30 percent during the first nine months, the filing added.