Guizhou Tyre Co., Ltd. released Oct. 14 the prediction for the financial results in the third quarter of 2017.
It forecasted losses of 18.35 million to 33.35 million yuan in Jun. – Sep.
In the first half of this year, the tire producer realized a net profit of 8.35 million yuan.
Therefore, in the first nine months, its losses may be between 10 million to 25 million yuan.
Guizhou Tyre disclosed that the losses in the third quarter were triggered by smaller product price lifting than raw material price hike and fewer profit margins.
In addition, its exports were affected by the U.S. anti-dumping and anti-subsidy measures, and the sales volume was smaller than the same period last year.
In the third quarter, driven by the price lifting trend in the tire industry, Guizhou Tyre raised product prices for several times.
On Sep. 1 and Sep. 20, Guizhou Qianjin Tire Co., Ltd., a subsidiary of Guizhou Tyre, released notifications for price lifting to increase prices of all-steel tire and bias tires.
However, it seems that the product price lifting failed to offset increased raw material cost.
