Goodway Reports Full-Year 2008 Loss

Goodway Integrated Industries Bhd registered 12,559 million Malaysian ringgits of pre-tax loss in the year ended 31 December 2008, compared with 6,702 million ringgits of pre-tax profits in 2007. Chief operating officer Alison Wong Ping Kiong told Malaysian Insider: “It was difficult for us to pass down the cost to customers as the prices fluctuated so much that by the time we price in the extra cost, the rubber prices increased again and vice-versa.” Wong said 75 per cent of the company’s revenue were derived from rubber compound while the remaining 25 per cent came from tyre retreading focused in the local market.

According to the news report, Goodway recently completed the acquisition of Autoways Sdn Bhd in Peninsular Malaysia, bringing the company’s total retreading capacity to 876,000 tyres per annum. The company’s market share in Sabah and Peninsular Malaysia reportedly stands at 65 to 70 per cent and 30 per cent, respectively. There are around 700,000 truck running on retreads and 400,000 units on new tyres in the territory.

The next stage is said to be to “grow big” in China, with the company on the lookout for further acquisitions “if the right deal comes by.” Another part of this strategy is the intention to increase rubber compounding capacity and retread business in China.