Posted by By Jerome Ushakang on
Dunlop Nigeria Plc has announced a loss after taxation of N36.9 million for the half year ended June 30, 2005. This is compared with loss after taxation of N44.3 million in 2004.
Dunlop Nigeria Plc has announced a loss after taxation of N36.9 million for the half year ended June 30, 2005. This is compared with loss after taxation of N44.3 million in 2004.
This indicated a further loss of N7.4 million representing 16.7 per cent of profit after taxation.
The company's unaudited financial report for the half year ended June 30, 2005 released to the market operators by the Nigerian Stock Exchange (NSE) also showed a turnover of N2.91 billion in contrast to N2.92 billion in the comparative period of 2004.
This also indicated that the company recorded a loss in turnover by N1 million or 0.34 per cent.
It will be recalled that the chairman of the company, Mr. Gamaliel Onosode while reviewing the performance of the company at the Annual General meeting (AGM) said substandard and under-invoiced smuggled tyres mainly from China continued to flood the Nigerian market unabated, aided by lapses at the ports.
He stated that the market was also characterised by intensive price cutting, inspite of depreciation of the Naira Exchange rate, increase in cost of finance and inflation rate.
Onosode said that this was suggestive that some elements of shady financial dealing apart from smuggling on the part of importers of tyres.
However, he said "Our import programme for the supply of much sough after, high performing Dunlop heavy truck tyres from sister factories in South Africa and Japan grew by seven per cent over the pervious year to confirm the acceptability of those tyres in the market place."
He disclosed that the repositioning of the factory by introducing the fourth shift has increased production output and factory efficiency, adding that the repositioning exercise is now yielding positive benefits in the current year.
The chairman said that the factory efficiency in the first quarter has notably improved and become more consistent in the higher band of efficiency that is about 90 per cent
He explained that development work on new tyer size, particularly on low aspect ratio car and van sizes were completed in 2003 on the popular 185/70 RX 14 was also developed.
Onosode said the results for the year reflected the very difficult trading environment during the period as turnover stood at N4.2 billion compared with N4.6 billion the previous year.
According to him, this included revenues of 'Industrial Product Business' for a period of six months.
However, he stated that the company made a loss before interest and tax of N319.2 million and a loss after tax and extraordinary item of N296.9 million.
There was also an extra-ordinary income, net of N474.03 million which was recorded from the sale of Abuja's Warehouse and the interest in DN Meyer plc
Onosode said in view of the disappointing results, the Directors of the company were unable to recommend a dividend.