Sibur-Russian Tyres Announces Preliminary 2008 Results

In releasing its preliminary financial results for the 2008 year on June 5, Sibur-Russian Tyres stated that, in spite of “unfavourable trends” during the reporting period, the company’s consolidated revenue – 27.4 billion roubles – did not decrease compared with 2007. The tyre maker further commented that the year’s results were impacted by both increases in raw material costs, beginning in March 2008 and reaching an apex in August, and a decrease in tyre sales during the fourth quarter as a result of the global economic crisis.

Total unit sales reached 10.2 million tyres, the company reports. Of this, 6.3 million were passenger car and light truck tyres, 3.5 million commercial vehicle tyres and 300,000 other types, including motorcycle and aviation tyres.

During 2008, revenue from sales decreased 7.5 per cent for commercial vehicle tyres, 12 per cent for industrial tyres and 6 per cent for agricultural tyres compared with 2007. Consumer demand in the passenger and light truck tyre segment (which includes the Cordiant brand) remained the same, reports Sibur-Russian Tyres. The company adds that income from all-steel tyre sales demonstrates that growth occurred in 2008 and revenue from aviation tyre sales doubled.

“Of course our financial results reflect the current economic reality,” reflected Sibur-Russian Tyres CEO Vadim Gurinov. “We do our best to overcome the recession without losses. We keep key staff at our plants, production facilities continue to operate, some important investment projects have been finished. Positive changes in sales are evident, particularly in B2B and B2C segments – tyre market demand is influenced by existing vehicle fleet therefore it is more tolerant to current economic situation. Indeed we expected better results. However I estimate the results of preceding year to be positive for our company.”