Delticom warns on profit outlook in 3Q results


Delticom reported profits of 280.4 million Euros in the first three quarters of this year which fell 5.8% compared with last year’s profits. The initial results have shown that the pre-tax profits cost 17.5 million Euros, which fell a third when compared to the pre-tax profits last year. Because of this, Delticom warns its investors of the scaling back of the pre-tax profits to 7-8% for the latest financial year.



“After the summer tyre business had already been disappointing, the winter tyre season started much slower than last year,” company representatives wrote in their financial statement.



The company has reported profits of 87.2 million Euros in the third quarter, which is lesser than  the 99.4 million Euros of profit in the same period last year. While the turnover of the e-commerce has lessen 5.9% in the quarter, the fall in profits could be blamed to the company’s wholesale division which decreased 67.5% to 3.4 million Euros which resulted in the 36.7% to 11.7 million Euros lost in the first three quarters of the year.



The performance of the earnings was also similarly affected. The pre-tax profits was reported to come down to 37.9% from 28.2 million down to 17.5 million Euros.



Delticom stated that the outlook for the future leads them to making an immediate change. “While last year’s winter tyre season benefitted from an early start, this year the winter tyre business has so far been relatively sluggish. Despite good demand for winter tyres in some European countries, management does not expect the company to exceed annual prior-year revenues anymore.” (RJA)