BRATISLAVA, Slovak Republic (Aug. 4) — Slovak tire and rubber products maker Matador A.S. reported double-digit sales and earnings growth in the first half, in part because the firm´s machinery business and Russian joint venture both were in the black.
Matador´s pre-tax profits grew 26 percent to $18.7 million, while sales increased 14 percent to $276.7 million; sales include a 50-percent share of the company´s Matador Omskshina venture in Russia.
Matador said it achieved improvements despite "major adverse impacts" from the increases of oil prices. The firm said it managed to adjust by finding alternative raw materials; through product innovation; by adjusting its pricing policy and cost reduction programs; and by benefiting from its diversification between rubber and machinery production.
Matador derives 80 percent of sales from its rubber industry activities and 20 percent from automotive parts.
The firm produced nearly 4.6 million tires at its plants in Slovakia, Russia and Ethiopia.