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Delticom AG: Q1 profitable but below plan
Due to unfavourable weather conditions in the first quarter, Delticom's business developed below plan. At the beginning of the year market-wide demand for winter tyres was depressed by a lack of snowfall. Additionally, temperatures ahead of the Easter holiday were too low for a good start into the summer season.
With 25.8% the Q1 gross margin was kept at prior-year levels (Q1 11: 25.9%). EBIT came in € 2.5 million lower, though, partly because of the weaker demand but also due to higher expenses for the new warehouse opened in May 2011.
In the tyre business seasonal effects are not uncommon. Management expects demand to normalise in the upcoming weeks. As the bulk of the summer tyres are sold in the second quarter, guidance for the full year remains unchanged at 10% growth in revenues and earnings.
Delticom will publish further Q1 preliminary figures on Thursday, April 19th on its website www.delti.com.
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