Alliance posts second quarter, first half results
Alliance Tire Co. Inc. posted $41.7 million in revenue for the second quarter of 2006 versus $40.9 million during 2Q 2005.
During the first half of the year, Alliance topped $78 million in revenue.
However, Alliance's sales costs during 2Q 2006 rose nearly 9% to $33.9 million and $63.4 million during the first six months of the year "mainly because of an average 14.6% rise in the cost of raw materials," according to Alliance officials.
The result was a drop in operating profit to $1.5 million for the second quarter and a drop to $3.1 million during the first half.
"This has been a challenging period for Alliance and for all tire manufacturers, especially in light of the rising cost of materials," says Joseph Anglister, Alliance's president.
"But we are encouraged by our continued success with original equipment manufacturers around the world, and by our growth in the OTR, forestry and other markets." (Alliance recently signed a $4 million supply contract with Caterpillar Inc.)