BOULDER CITY, Nev.—Specialty tire producer Amerityre Corp. returned to the black for the quarter ended Dec. 31, reporting net income of $2,816 despite a 3.8 percent drop in sales, to $879,607.
The quarterly net income contrasts with a net loss of $177,040 a year earlier. Amerityre attributed the improvement to cost savings that accrued from business structures and other improvements that the company enacted during fiscal 2016.
The positive second period is just the fourth profitable quarter in Amerityre's 20-year history.
Income from operations stood at $4,648, vs a loss from operations a year ago of $176,140.
For the six months ended Dec. 31, Amerityre reported a net loss of $32,010, owing to a loss of $59,826 in the first quarter. Sales were off 11 percent to $1.72 million, reflecting weak demand in the agricultural sector.
During the fourth quarter of fiscal 2016, the company procured a term loan to finance needed investments in manufacturing equipment, laboratory instruments and website development. However, a lack of available capital prevented the firm from executing its other strategic marketing initiatives, which Amerityre said has impacted negatively its market position and profitability.
For the remainder of fiscal 2017, Amerityre anticipates continued depressed agricultural tire sales, due to the continuation of business conditions causing depressed farm income.
Amerityre also expressed optimism in the possibility that the Trump administration's campaign promises of implementing policies to promote American manufacturing.
Such policies, "if implemented, may improve our competitive position against our competition, who produce their tires overseas and import them for sale in the U.S.," Amerityre said, while at the same time cautioning that the same policies could have negative impacts since the firm sources the majority of its wheel rims from overseas.
Boulder City-based Amerityre engages in the development, manufacturing and sale of polyurethane tires, with a concentration in three segments of the tire market—closed-cell polyurethane foam tires, industrial polyurethane elastomer tires and agricultural tires.