Delticom AG says Q1 profitable but fails expectations

GERMAN online tyre dealer, Delticom has released preliminary figures for the first quarter of 2012. While revenues came in flat YoY (EUR85.5 million in Q1 2012 and EUR85.4 million Q1 2011), earnings before interest and taxes (EBIT) fell to EUR3.4 million, lower than the EUR5.9 million in Q1 2011.

According to the company the low revenue in the first quarter was caused by unfavourable weather conditions. At the beginning of the year, market-wide demand for winter tyres was depressed by a lack of snowfall. Additionally, temperatures ahead of the Easter holiday were too low for a good start into the summer season.

With 25.8% the Q1 gross margin was kept at prior-year levels (Q1 11: 25.9%). EBIT came in EUR2.5 million lower, though, partly because of the weaker demand but also due to higher expenses for the new warehouse opened in May 2011.(PRA)