Amtel-Vredestein doubles net losses in first nine months

Enschede, Netherlands - Amtel-Vredestein NV, reported growth in both sales and pre-tax profits for the three-months and the nine-months ending 30 September 2006. The report is unaudited at present.

The company reported a net loss of $7 million in the three months, taking the nine-month loss to $22 million. The quarterly loss is less bad than the $12 million reported a year ago, but over the nine months net losses have doubled from $11 million by the 3rd quarter last year.

The net losses conceal a picture of strong growth at the company, however. Gross margins are running at over 20 percent while operational earnings have increased from break-even a year ago. The company expects the net result in the fourth quarter to be strongly positive, bringing the year's loss to $10 milllion to $12 million overall.

Net sales increased 19 percent in the first nine months of 2006 - to $548 million (€427 million) compared with the $459 million reported in the same period in 2005. EBITDA was $64 million (€50 million) for the first nine months of 2006 - up 36 percent against the same period in 2005.

A-V said net revenue from passenger car tyres (PCT) grew 39 percent to $332 million from $239 million in the first nine months and represented 61 percent of total sales during the period.

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Press release from Amtel-Vredestein