Amtel-Vredestein Publishes 2006 Annual Report

Amtel-Vredestein released its audited 2006 Annual Report on June 15. The report remains subject to shareholder approval at the company’s Annual General Meeting of Shareholders, to be held in Amsterdam on June 30. The company previously published its summary 2006 and first quarter 2007 earnings results on 16 May 2007, and the audited accounts as included in this 2006 annual report are substantially the same as the previously reported un-audited results. However a number of adjustments have been made.

The company’s annual sales have been adjusted to $817 million versus the previously reported $823 million. This change occurred because $6 million in revenue has been reclassified as inter-company transactions in the fourth quarter of 2006. Profit from operations also reduced to $33 million from $36 million, primarily because of additional provisions related to AV-TO subsidiary. Net loss was also reduced by $2 million to a new figure of $5 million as a result of approved adjustments.

The audited financial results show that Amtel-Vredestein delivered a profit from continuing operations of $41 million and a net profit of $1 million. The consolidated statement of cash flows for the period also shows improvement. The positive cash flows from operating activities were $13 million versus a shortfall of $39 million in 2005.

The results also reveal significant growth in the company’s core passenger car tyre business, up 30.4 per cent to $450 million, and up 47.5 per cent to $509 million when including those passenger car tyres sold through Amtel-Vredestein’s AV-TO division.