JK Tyre announces loss in Q4

ERJ staff report (DS)

New Delhi, India -- JK Tyre & Industries Limited has said a loss in the fourth quarter, has brought its annual results down. The company has changed its financial year, so the current year comprises fifteen months to 31 December 2008, rather than the standard 12 months.

In the three months ended 31 December, the company reported sales up by 6 percent to Rs 8723 million (Euro 137 million), but the company said it made a pre-tax loss of Rs 368.3 million compared with a profit of Rs 342 million a year ago.

The fifteen months ended 31 Dec showed an operating profit of Rs203.5 million, down from the profit of Rs1000 million reorded in the 12 months to Sept 2007.

Raghupati Singhania, Vice Chairman & Managing Director, said, "The unprecedented global economic slowdown has also affected India in no small measure, particularlythe automobile sector. Consequently, demand for tyres has been severely impacted. Furthermore, there has been steep increase in cost of raw materials and inputs. These have severely affected the profitability of the company."

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Press release from JK Tyre