Linglong Tire expects earnings to surge in first half

Shanghai, China - Shandong Linglong Tire Co. expects to post a more than 50% year-on-year increase in earnings for the first half of the year.

Net profit is projected to come in between Yuan840 million (€106 million) and Yuan990 billion after non-recurring gains and losses, the Chinese tire maker said 9 July.

The figures represent an increase of 68% to 98% compared to the same period a year ago, according to Linglong's stock exchange filing.

Over the six months, Linglong said it “actively upgraded its products and continuously carried out structural adjustments" in domestic and international markets.

At the same time, the group’s second overseas production base in Serbia gradually ramped up production capacity, supporting sales growth in international markets.

“Product sales” increased by 11% year-on-year during the first half, reported Linglong without providing further details.

Overseas market sales increased by 20% year-on-year, and sales of high-margin passenger car tires increased by 12% year-on-year, the group added.

Linglong also noted that it continued to promote cost-reduction and efficiency-improvement during the period, thereby enhancing profitability.