MOSCOW (Jan. 30, 2008) — While Amtel-Vredestein announced strong third-quarter results, the firm warned that refinancing short-term debts and supply disruptions remain challenges.
The company said it is attempting to solve these problems with support from international bankers but predicts the result is likely to reduce the value of stocks held by shareholders.
The company said its debts as of Sept. 30 stood at $870 million, up 6 percent from the figure reported three months earlier. Amtel pointed to foreign losses on the debt portfolio as the cause for the increase.
Debts aside, Amtel reported sales climbed 26 percent in the first nine months of last year, ended Sept. 30.
In terms of tires during the period, net revenues from the car tire business grew 24.7 percent over 2006 to $414.1 million and represented 59.9 percent of total sales during the period. The firm said it sold 10.5 million passenger car tires during the nine months period vs. 9 million during the like period in 2006.
The company projects annual sales of $980 million for 2007 and said it plans to be operationally profitable for the year. However, it expects to continue to show losses on a consolidated basis because of negative contributions and high interest expenses.