Delticom AG publishes 9-monthly report 2012

Online tyre dealer Delticom has published its 9-monthly report for 2012. In a troubled market environment the company recognised revenues of €280.4 million in 9M 12, a fall of -5.8 per cent year-on year.

Earnings before interest and taxes (EBIT) decreased in the reporting period by 37.9 per cent to €17.5 million (9M 11: €28.2 million), primarily due to higher fix costs. This translates into an EBIT margin (EBIT in percent of revenues) of 6.2 per cent (9M 11: 9.5 per cent). Third quarter EBIT saw a decline of 55.0 per cent, from prior-year's €9.5 million to €4.3 million. The quarterly EBIT margin was 4.9 per cent (Q3 11: 9.5 per cent).

Consolidated net income totalled €11.7 million (€19.0 million in 9M 11). This corresponds to earnings per share (EPS) of €0.99 (undiluted, 9M 11: €1.60), a decline of 38.4 per cent.

Since the beginning of the year, working capital came down by €21.5 million or 48.4 per cent to €22.9 million (31.12.2011: €44.4 million). In the corresponding prior-year period the increase in working capital value had amounted to €40.7 million. In light of the positive development in net working capital the cash flow from ordinary business activities (operating cash flow) for the period under review was significantly better than last year, at €29.7 million (9M 11: €–26.0 million).

Business in the first nine months fell short of expectations. While last year’s winter tyre season benefitted from an early start, this year the winter tyre business has so far been relatively sluggish. Despite good demand for winter tyres in some European countries, Management does not expect the company to exceed annual prior-year revenues in 2012.

Due to the challenging market environment Delticom has scaled back its EBIT goal for the current financial year to 7 per cent – 8 per cent.