Tuesday, April 19, 2011

Delticom AG: Q1 2011 on track

Hanover, 19 April 2011 – Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, looks back on another successful quarter. According to todays preliminary figures, revenues in the first quarter of 2011 increased by 14.6% to € 85.4 million and EBIT by 4.6% to € 6.1 million. EBIT margin decreased to 7.2% (Q110: 7.9%). Earnings per share grew 4.8% to € 0.35.

Due to a lower amount of snowfall this winter, sales were initially weaker than in the previous year. On top of this, Easter does not fall until the second half of April this year; traditionally, many drivers change to their summer tyres before this holiday. Last year, business in March was able to benefit from this effect, whereas this year will see relatively more summer tyre sales happen in the second quarter. However,demand did not gather significant momentum until springlike temperatures took hold in March.

Revenues. In spite of of the previous year's basis, Delticom was able to generate revenues of € 85.4 million, a plus of 14.6% from prior-year's € 74.5 million. Revenues in the E-Commerce division were up year-on-year by 13.9%, from € 70.7 million to € 80.5 million. The revenues of the Wholesale division lifted by 28.6% to € 4.8 million, after prior-year revenues of € 3.7 million. Other operating income increased in Q111 by 3.1% to € 1.3 million (previous year: € 1.3 million).

Gross profit. The cost of sales increased in the reporting period by 15.0%, from € 54.8 million in 2010 to € 63.0 million. In an environment of rising purchasing prices and further supply bottlenecks, Delticom was to a good extent able to cushion the hikes by purchasing early. As a result, the gross profit advanced in the reporting period by 13.0% year-on-year, from € 21.0 million to € 23.7 million. The gross profit margin (gross profit in relation to total income) decreased from 27.7% to 27.3%.

Personnel expenses. In the reporting period on average 108 staff members were employed at Delticom (Q110: 94). Personnel expenses amounted to € 1.7 million (previous year: € 1.6 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) remained almost unchanged (2.0%, Q110: 2.1%).

Other operating expenses. Overall the other operating expenses totalled € 15.4 million in the past quarter, an increase of € 2.2 million or 16.7% over the prior-year value of € 13.2 million.

Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from € 6.4 million by 5.8% to € 6.8 million. The share of transportation costs against revenues decreased from 8.6% in Q110 to 7.9% in Q111, partly driven by relatively stronger revenue growth coming from higher selling prices.

Marketing expenses amounted to € 2.0 million, after € 1.7 million in Q110. Although this represents an increase of 17.0%, the relationship to revenues remained on a level with last year, with a share of 2.3%.

Depreciation. In line with the gradual expansion of warehouse capacity and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.6% from € 0.3 million in Q110 to € 0.4 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.

Earnings performance. Although EBIT had risen steeply in the first quarter of last year (+122.3%), EBIT for Q111 saw a year-on-year increase once again, by 4.6% to € 6.1 million (Q110: € 5.9 million). This translated to an EBIT margin of 7.2% (Q110: 7.9%).

The continually low Euro money market rates led to a poor financial result of € 39 thousand (Q110: € 26 thousand). The expenditure for income taxes was € 2.0 million (previous year: € 1.9 million). The tax rate of 32.2% was almost flat at the previous year's level.

Consolidated net income for the period grew from € 4.0 million to € 4.2 million. This corresponds to earnings per share (EPS) of € 0.35 (undiluted, Q110: € 0.34), a step-up of 4.8%.

Cash flow and liquidity position. Following the reversal of year-end effects and the scheduled buildup of stock levels to € 83.3 million (31.12.2010: € 51.7 million), net working capital increased to € 23.7 million (31.12.2010: € 1.3 million). As a consequence, cash flow from ordinary business activities (operating cash flow) for the period under review came in lower than last year, at € –18.5 million (Q110: € 4.7 million). Delticom's reporting-date liquidity amounted to € 47.5 million; it was slightly higher than in the previous year (31.03.2010: € 45.0 million).

Frank Schuhardt (CFO) is satisfied with the progress of business so far: “The success seen in the equivalent quarter of last year placed the bar very high. So of course that makes me all the more pleased to see that Delticom has managed to once again increase revenues and its result. We’re absolutely on track.” For 2011, Delticom AG’s management continues to anticipate an increase in revenues of approximately 10%, with an EBIT margin around one percent lower than in 2010.

The full report for the first quarter of 2011 will be published by Delticom AG on 10 May 2011 on its website www.delti.com within the "Investor Relations" section.

Thursday, April 14, 2011

Tyrepac expands local network of fitting locations

Tyrepac has announced that with the addition of the latest fitting location, they now have in excess of fifty fitting locations, giving Tyrepac the most extensive network of locations in Singapore.

Tyrepac launched more than two years ago with sixteen fitting locations in Singapore, is targeting an even bigger network of fitting locations to further enhance convenience for consumers.

“We are delighted to provide our customers with a wider selection of fitting locations, making it more convenient for them to find one closer to their home or office.” said Tyrepac Managing Director, Ler Hwee Tiong. “Tyrepac goes through an extensive selection process, visiting each location and inspecting their facilities before adding them to our network.”

In addition to the new fitting locations, Tyrepac has also introduced improved features such as “Tyrepac Recommended” locations, reviews & ratings by customers of these locations, and detailed services provided by these locations.

“Tyrepac has always placed our customers first, and the feedback and opinions we receive is invaluable.” added Ler. “The reviews will be extremely helpful for customers in deciding which location to select.”

“As always, we are always looking to enhance the website with more customer interaction.” said Linus Koh, Tyrepac Webmaster. “Users can expect more changes as we seek to provide the best platform for our customers to shop for tyres online.”

About TyrepacTyrepac was founded in Singapore in 2008, and is Asia's first and largest online tyre retailing website. Tyrepac offers a comprehensive range of tyres, with transparent pricing, and convenience from more than 2,700 fitting locations in Asia. Tyrepac also provide quotations for battery, automotive insurance, and servicing packages in collaboration with its service partners.

As of December 2010, Delticom AG invested into Tyrepac. Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover based company operates more than 100 online shops in 39 countries and has served more than 4 million customers so far. Delticom is listed on the German Stock Exchange (ISIN DE0005146807, ticker symbol DEX). As of the end of March 2011, market capitalisation stands at approximately EUR 755 million (approx. SGD 1,360 million).

Thursday, April 7, 2011

Goodyear introduces the Eagle F1 Asymmetric 2

Goodyear is proud to introduce the Eagle F1 Asymmetric 2 with revolutionary ActiveBraking Technology, which answers the most pressing needs of consumers of Ultra High Performance (UHP) tyres: greatly improved stopping distances when they need it most.

The Eagle F1 Asymmetric 2 is the latest in Goodyear's Ultra High Performance summer tyre line-up. It is a tyre that is designed to exceed the high expectations set by outstanding success of its predecessor, the Goodyear Eagle F1 Asymmetric.

The ActiveBraking Technology in the new Eagle F1 Asymmetric 2 increases road contact during braking, thereby delivering significantly shorter braking distances on both dry and wet roads - proof of Goodyear's continued commitment and efforts to improving road safety.

The tyre also performed well in dry braking and handling tests, stopping 2 meters shorter than the average performance of the three leading competitors. On dry roads, the competitors tested were still travelling at an average speed of 22km/h while the Goodyear Eagle F1 had already come to a stop. The TÜV SÜD Automotive test also confirmed that the Eagle F1 Asymmetric 2 delivers top-class rolling resistance in its category, with a 7% better rolling resistance.

Better prepared for the unexpected - with ActiveBraking Technology.
Building on the success of its predecessor, the new Eagle F1 Asymmetric 2 with ActiveBraking Technology, crossed plies carcass structure and ‘high surface' silica tread compound sets new standards in dry and wet performance, handling and braking in the ultra-high performance tyre segment.

Asymmetric 2 increases the road contact patch of the tyre during braking. While conventional tyre blocks show little or no transformation during braking, the blocks in the Eagle F1 Asymmetric 2 due to their specially designed shape, develop more surface under braking load and therefore increase the tyre-to-surface contact area. The larger contact patch offers increased grip, which in turn leads to shorter stopping distances.

Improved dry performance: handling and steering precision with exceptional braking capacities.
The new Eagle F1 Asymmetric 2 features a crossed plies carcass structure, which contributes to increased torsion stiffness for improved steering precision, handling and braking on dry road surfaces. The new tread compound, containing very high levels of a new Silica grade delivers superior grip levels leading to further gains in dry handling and dry braking performances.

The lower tyre weight also contributes to better dry handling, as the vehicle's unsprung mass is reduced, enabling the tyre to follow the surface contours more closely.

Short braking on wet
On top of the ActiveBraking Technology, the new tread compound, using a unique blend of high molecular weight polymers, a very high silica content and race traction resin bring increased levels of adhesion on wet road surfaces.
Reduced fuel consumption and CO2 emissions.
The new Eagle F1 Asymmetric 2 also features Goodyear's renowned FuelSaving Technology, which ensures reduced fuel consumption and CO2 emissions.

Three areas have been subject to Goodyear engineers' attention:
- A minimized tyre weight with less rubber and an optimized tyre construction for reduced heat generation and rolling resistance;
- A new ‘high surface' silica grade that contributes to reduced heat generation;
- An aerodynamic sidewall design, which delivers significantly lower aerodynamic drag further minimizing energy loss, especially at higher speeds.

Lower noise emission levels
The Eagle F1 Asymmetric 2 offers a smooth and quiet ride. The tyre's optimized block design and optimized 4 Pitches Sequence with 64 blocks on the outside and 72 blocks on the inside help reduce noise output levels.

Better mileage
The tyre's computer optimized cavity shape and tread stiffness result in uniform pressure and stiffness distribution across the footprint, resulting in better mileage levels.

Wide range of sizes available
The Goodyear Eagle F1 Asymmetric 2 is available in 29 popular sizes:

235/50R18 XL 101 Y

215/45R17 87 Y
215/45R17 XL 91 Y
225/45R17 91 Y
225/45R17 XL 94 Y
235/45R17 94 Y
235/45R17 XL 97 Y
235/45R18 XL 98 Y
255/45R18 XL 103 Y

245/40R17 91 Y
245/40R17 XL 95 Y
225/40R18 88 Y
225/40R18 XL 92 Y
235/40R18 XL 95 Y
245/40R18 93 Y

245/40R18 XL 97 Y
255/40R18 95 Y
255/40R19 XL 100 Y

245/35R18 XL 92 Y
255/35R18 XL 94 Y
265/35R18 XL 97 Y
225/35R19 XL 88 Y
235/35R19 XL 91 Y
245/35R19 XL 93 Y
255/35R19 XL 96 Y
285/35R18 97 Y

255/30R19 XL 91 Y
265/30R19 XL 93 Y
275/30R19 XL 96 Y

In 2012, an additional 21 sizes will be added to the size line-up.

Stay tuned for updates when the Goodyear Eagle F1 Asymmetric 2 arrives in Singapore!

Tuesday, April 5, 2011

Delticom-Report “Tyres Online 2011”: Internet Tyre Purchase Becoming More Popular

HANOVER, Germany--(BUSINESS WIRE)-- Approximately 40 percent of motorists in Germany want to buy their tyres on the internet. A current representative Forsa survey commissioned by Delticom, the European market leader in internet tyre sales, shines a light on the attitudes and behaviour of German motorists regarding buying tyres online. A total of 1,000 potential tyre purchasers age 18 to 65 were polled.

The interest of German motorists for ordering tyres on the internet has increased significantly: In 2010 it was 32 percent and overall this year it's approximately 10 percent more. 79 percent of respondents are convinced of the advantages of buying tyres on the internet: free and easy access to helpful and useful information, including test results. 72 percent of consumers appreciate saving time by shopping on the internet. What’s important for 67 percent of motorists is the greater selection of tyres and for 63 percent it is safety certificates such as the TÜV’s "S@fer-Shopping" quality seal. “We can only confirm this positive development. Last year solely approximately one million new customers ordered their tyres from our online tyre shops. In Germany it’s primarily our services at ReifenDirekt.de, the winner of multiple awards for tyre shops on the web, that receive high marks and recognition,” reports Rainer Binder, CEO of Delticom AG (FWB:DEX.f - News)(GER:DEX.de - News).

As shown by the current “Delticom-Report”, at just under 50 percent younger surfers age 18 to 19 in particular are the trailblazers of purchasing tyres online. Currently people age 50 to 65 still have a more reluctant attitude towards buying tyres on the internet. All the same, 30 percent of respondents in this age group would still order their tyres on the web.

On the road with summer tyres: good, but room for improvement
“German motorists are not only more open to purchasing tyres on the internet. Driver safety is also playing an increasingly bigger role. The results of our survey clearly show this,” says Rainer Binder. The great majority, 88 percent, change from winter to summer tyres and vice versa.

However, the time for changing to new summer tyres has the potential for optimisation. The purchase of new ones is primarily dependent on TÜV inspections: 83 percent of motorists buy new summer tyres when their old tyres fail inspection. 26 percent of motorists replace them only after they have fallen below the legally prescribed thread depth of 1.6 millimetres.

Internet convinces with inexpensive tyre offerings
Germany’s motorists are increasingly paying attention to the price when purchasing tyres. Men in particular appreciate the consumer-friendly terms of tyres being offered on the internet: When making their purchasing decision the price is the deciding factor for 95 percent – eleven percent more than in 2010. At 87 percent most women value free information and test results as well as time savings (77 percent).

Clever motorists in particular will find what they are looking for at Delticom. According to customer statements tyres at ReifenDirekt.de are often 20 to 25 percent less expensive compared to other shopping venues. The leading tyre dealer Delticom also provides its customers a selection of 100 tyre brands and more than 25,000 tyre models at over 121 online shops in 39 countries. At the online shops customers can shop for summer, winter or all-season tyres any time they want. In addition, the international and independent Reifentest.com testing platform provides access to current tyre tests conducted by tyre purchasers in everyday situations. ADAC members also receive a three percent discount on car and complete wheel sets.

Information about the company: delti.com
Online tyre shop in Germany: ReifenDirekt.de