Tyre sales down by 10 percent, but profit up 618%

Increased emphasis on the truck tyre market, with its tie in to retreading, saw National Tyre Services’s volumes increase by 16 percent in the first half of this year, but overall volumes were down by 10 percent.

The company says passenger and light truck tyre sales declined because of the shortage of fuel while sales to the agriculture and mining sectors were affected by ongoing constraints in these sectors.

It says the market’s ability to meet the ever-increasing cost of tyres is likely to affect volumes especially for privately owned vehicles.

The retreading division did quite well and capacity was increased by 30 percent. The company is reviewing its network and the affordability of acquiring new technology for its relug section.

In monetary terms sales rose by 377 percent from $1.8 billion to $8.8 billion.

Operating profit surged 626 percent from $399.1 million to $2.9 billion with net profit increasing by 618 percent from $272.7 million to $2 billion.

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