QINGDAO, China — Sailun Group is forecasting an eanrings rebound in the first quarter of fiscal 2018 after suffering double-digit earnings drops in fiscal 2017.
According to recent Sailun announcement, the Qingdao-based company expects its first quarter net earnings would range from $16.7 million to $19.3 million, compared with an $8.7 million net loss in the 2017 first quarter.
For fiscal 2017, Sailun said its net profit fell 13 percent to $51.4 million on 22 percent higher sales of $2.2 billion.
"Prices of the company's main raw materials rose significantly over the first half of 2017, whereas tire price was lagging behind, rising at a slower rate," the company said.
The second half of 2017 saw a sharp year-on-year rise in the company's net profit, but still not enough to make up for the whole year.
"Raw material prices have stabilized during the period…and the production and sales volume of our Vietnam plant have been increasing," Sailun said. "We have been actively expanding into overseas markets and expect a substantial boost in tire products' profit margin."