Strong Asian demand helps boost profits for Dunlop Aircraft Tyres
BIRMINGHAM-based Dunlop Aircraft Tyres has seen big increases in turnover and profit as demand for its products surges in the Far East.
The firm, the world’s only dedicated aircraft tyre manufacturer and retreader, exports 75% of its products and in its annual accounts said sales in the vital Asia Pacific region increased by more than 70% during 2012.
Turnover for the year ended December 31, 2012 increased 13% to £40.05m (2011: £35.5m), with profits standing at £5.42m (2011: £4.43m).
Gross profit rose by 15% to £15.27m (2011: £13.27m). Gross profit also improved as a percentage of sales from 37.4% in 2011 to 38.1% last year.
In its Directors’ Report the firm said: “Despite a challenging macroeconomic environment, particularly in its core European market, the company enjoyed an encouraging year.
“Sales to UK customers grew by only 3% but exports grew strongly, especially to Asia Pacific where sales increased by more than 70% due to the further development of the Dunlop Taikoo (Jinjiang) Aircraft Tyres Company Ltd retread and new tyre distribution facility.”
Sales to the US and other American territories increased by more than one third but it was Europe that struggled most due to the continuing difficulties in the Eurozone countries.
The firm, which won the Queen’s Award for Enterprise in 2011 for its international sales success, said sales in Europe declined by 15% during the year. This had a particularly adverse effect on retread tyre sales, it added.
It said it had responded to the weakness in the European economy by expanding in markets such as Asia where growth is stronger.
The Chinese operation, a 63% owned joint venture, had grown capacity considerably during the year and was now self-sufficient in local supplies of raw materials.
DAT said it had started 2013 positively despite the continued weakness in the UK and Europe. It has been boosted by stronger than normal sales in military tyres to Asia and the Middle East, helping to offset the lower growth markets.
It said pricing remained competitive in all its markets although raw materials and inflation in general remained relatively subdued.
