Lower raw material prices drive up Linglong’s first half earnings

Yantai, Shandong – Linglong recorded €109 million (Yuan897 million) net profit during the first half of 2020, up 23.6% from a year ago, making it "the most profitable Chinese tire maker" over the period, the company has announced.
 
Sales in the first six months of 2020 fell by 0.8% year-on-year to €1 billion, the Yantai-based tire maker said in its half year report released in August.
 
In the second quarter, prices for the main raw materials such as natural rubber, carbon black and steel cord contracted by 19.2% from a year ago. This compares to a 2.6% drop in the first quarter.
 
Linglong’s tire prices remained about flat during the period, the report added. 
 
Over the half year, the company produced 28.5 million units of tires and sold 27.1 million, down by 1.8% year on year. The drop was bridged during the second quarter, when tire sales jumped 8.2% to 14.9 million units.
 
Linglong claims that its performance in the first half made it the China’s largest maker of passenger car tires and the second largest in truck and bus tires during the perdio. The company also boasts the highest production overseas for a Chinese firm.
 
Linglong's Thailand subsidiary registered €73.4 million net profit during the first half, up 26.6% from a year ago. Sales fell by 1.7% to €270 million.