Delticom AG: Unfavourable market conditions
Delticom adjusts full year guidance
Following a weak first half year, the European tyre replacement market continued to lag expectations in the third quarter. Delticom was not immune to this trend and saw quarterly revenues falling year-on-year by 12.3 % from € 99.4 million to € 87.2 million. As a result, year-todate revenues amounted to € 280.4 million (9M 11: € 297.7 million, -5.8 %)
In the third quarter, Delticom kept the gross margin flat year-on-year at 25.7 % (Q3 11: 25.8 %).
Due to the higher fixed costs the quarterly EBIT-margin of 4.9 % was markedly lower then last year (Q3 11: 9.5 %). For the full nine months the EBIT amounted to € 17.5 million (9M 11: € 28.2 million) which corresponds to an EBIT margin of 6.2 % (9M 11: 9.5 %).
While last year's winter tyre season benefitted from an early start, this year the winter tyre business has so far been relatively sluggish. Despite good demand for winter tyres in some European countries, Management does not expect the company to exceed annual prior-year revenues anymore. Due to the challenging market environment Delticom scales back its EBIT goal for the current financial year to 7 % - 8 %.
According to the financial calendar Delticom will report further preliminary 9M figures tomorrow.
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 42 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. The independent website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 30,000 service partners - affiliated garages which take delivery of tyres and then install these on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically and abroad.
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch