Matador Q1 Earnings up 18 Per Cent

During the period between January 1 and March 31 2007 the Matador group reported earnings of SKK 4.54 billion (£90.6 million), an 18 per cent increase on the same period in 2006. From this figure, Matador’s rubber division recorded earnings of SKK 3.52 billion (£70.3 million), and of this 78 per cent was generated via the company’s M-Pneu tyre division

During the three-month period the group reached a pre-tax profit of SKK 296 million (£5.9 million), SKK 47 million (£938,000) more than during January to March 2006. The company’s rubber business earned SKK 278 million (£5.5 million) and its automotive division SKK 18 million (£359,000). Profit to sales ratio reached 7.3 per cent, attributable largely to lower operating costs at the beginning of the year.

During the period the group invested almost SKK 168 million (£3.34 million) in machinery and equipment and SKK 63 million (£1.3 million) was invested in research and development. By the end of March 2007 the group employed 5530 employees including 50 per cent of those employed at the Omskshina joint venture plant. Shortly after the January – March financial quarter ended Continental AG acquired a 51 per cent shareholding in Matador’s rubber division, a move Conti believes will facilitate its expansion in Eastern European markets.