Prinx Chengshan Increased Profit for Half Year

Sep 09, 2020

Prinx Chengshan Increased Profit for Half Year

China's Prinx Chengshan (Cayman) Holding Ltd., which includes tire maker Prinx Chengshan (Shandong) Tire, posted a 1% increase in earnings for the half year amid a 1% decline in sales.

In the first six months of the year, pre-tax profit was $ 44.5 million and net income was $ 37.8 million. Sales for the period reached $ 406.3 million.

The company said it has overcome the impact of "severe stagnation" in the global economy, which was caused by the COVID-19 pandemic. This was due in part to increased activity in the markets of Africa, Latin America and other regions less affected by the pandemic.

Overall, sales outside of China have declined slightly, but the company's share of the company's revenues attributable to international markets remains stable at 30 percent. In North America, Prinx Chengshan has “laid a solid foundation” for the sale of truck tires from the company's Rayong, Thailand plant. The company began production of tires in the second quarter and expects to reach full capacity by the end of the year. At the same time, private label tire revenue fell by almost 49% due to the pandemic and a decline in cooperation with Cooper Tire & Rubber. This segment now accounts for only 4.4% of Prinx Chengshan's sales.

For the second half of 2020, the tire maker does not make much predictions, but expects the market to continue to be impacted by the coronavirus pandemic and trade disputes between the United States and China.

Founded in 1976, Prinx Chengshan was ranked 34th among the world's top tire manufacturers in 2019 with sales of $ 776 million per year. The company manufactures and markets tires under the Austone, Chengshang, Fortune and Prinx brands.


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