Alliance Tire Co. (TASE:ALIN) announced a net profit of $102,000 for the third quarter of 2004, compared with a net loss of $1.66 million in the corresponding period last year. The third quarter is the third successive quarter of profits for Alliance.
Sales grew 26.3% in the third quarter of 2004, to $29.7m. Local market sales increased 4% to $7.9 million, representing 27% of total sales. In the export market, sales grew at a higher rate of 37%, to $21.8m.
Third quarter operating profits increased to $1.8m. compared with $835,000 in the corresponding quarter last year.
Net profit in the first nine months of 2004, grew to $3.7 million, compared with a net loss of $8.3m. in the corresponding quarter last year.
Sales increased to $93.4m. in the first nine months of the year, up 29% compared with the corresponding period in 2003.
The company’s orders backlog increased to $14.7 million at the end of September 2004, compared with $7m. in the same period last year.
Alliance chairman Isia Tchetchik said the third quarter growth was hindered by the port strike that prevented sales of $1.9m. Despite this, he said, the company managed to achieve positive results that prove that Alliance is experiencing an improvement in business performance.
Alliance president Joseph Anglister said the break-through in sales to Central and South America continued in the third quarter, in particularly in Brazil where sales doubled to $5.1 million in the first nine months of the year. Alongside this growth, he stated, Alliance continues to implement efficiency measures. Production cost per ton output fell 2.5% to $2.38 per ton, and production increased 19.4%, to total production of 27,527 in the third quarter of 2004.
Alliance Tire employs 800 people and its annual turnover is over $120 million. The company has more than 50 years of experience in production and marketing of a wide range of agricultural, multi-purpose and industrial tires for export (approximately 75%) and passengers and light truck tires for the local market (about 25%).
Alliance is owned by businessman Eliezer Fishman, the controlling shareholder of "Globes".
Published by Globes [online] - www.globes.co.il - on Sunday, November 28, 2004