Alliance Records Profit Following Four Years of Losses

(Akron/Tire Review) After four successive years of losses, Alliance Tire Co. reported a net profit of $0.9 million for 2004 in its newly released financial results. The company ended 2003 with a net loss of $13.1 million. But, in 2004, gross profits increased to $31.1 million, compared to $20.4 million in the previous year.

According to Alliance Tire, its revenues increased 29.7 per cent in 2004 to $129.3 million, compared with $99.7 million in 2003. Local market sales grew 7.0 per cent to $31 million and represented 24 per cent of total sales. Overseas sales continued to grow at a rate of 39 per cent, to $98.3 million.

Production increased 20.9 per cent to a total of 38,090 tons in 2004, according to Alliance Tire. Operating profit for the fourth quarter of 2004 grew to $2.4 million, compared with an operating loss of $0.8 million in the same period of the previous year. However, the company ended the fourth quarter with a net loss of $2.8 million due to the affect of the Euro currency on the company’s loans. An improvement was additionally reported on Alliance Tire’s EBITDA: $19.3 million compared to $11.6 in 2003.

“The improvements we saw in 2004 reflect Alliance’s greater efficiency, expansion into new markets, and opportunities to serve key markets that are experiencing tight supplies,” said Joseph Anglister, president of the company. Mr Anglister added that the company is experiencing record sales in both North and South America.