ENSCHEDE, Netherlands (Nov. 15) — Amtel-Vredestein N.V. reported growth in both sales and pre-tax profits for the three- and nine-month periods ending Sept. 30 but the net result was negative for both.
The Russian-Dutch venture reported a net loss of $7 million in the three months, taking the nine-month loss to $22 million. The quarterly loss is an improvement over the $12 million loss reported a year ago, but net losses over the nine months have doubled from $11 million last year.
The net losses conceal a picture of strong growth at the company, however. Gross margins are running at more than 20 percent while operational earnings have increased from break-even a year ago. The company expects the net result in the fourth quarter to be strongly positive, bringing the year´s loss to $10 million to $12 million overall.
Net sales increased 19 percent in the first nine months of 2006 to $548 million. Pre-tax operating earnings for the first nine months of 2006 were up 36 percent to $64 million.
Amtel-Vredestein said net revenue from passenger tires grew 39 percent to $332 million from $239 million in the first nine months and represented 61 percent of total sales during the period.