BEIJING (Oct. 13, 2011)—Total profits of seven large Chinese tire makers for the first half of 2011 declined in comparison to a year ago, despite higher revenues.
Total sales increased by around 26 percent to $3.65 billion. However, net profits fell by 18 percent, $55 million. This means the combined net profit margin fell to 1.5 percent from 2.4 percent.
The seven tire makers include Double Coin Holdings, Aeolus, Qingdao Double Star and ST Yellow Sea. Yellow Sea was the only one of the seven to report a loss.
An analysis of the steel cord business showed a similar picture, with total revenues up by around 5 percent to $940 million. Margins in the steelcord business were higher at 9.6 percent, down from 13.5 percent reported a year previously.
The three companies analyzed were Xingda International, Star Technology Inc. and Fuxing.