Boulder City, Nevada – Amerityre, which makes several ranges of polyurethane industrial and agricultural tyres, generated total sales of $1.1m in the third quarter of 2019. This was up 21.04% on the same period last year.
Gross profit across the business rose by 22.1%, and reached $352,900 in the third quarter of 2019. Stable raw material costs and new customers helped Amerityre to gain operating profit in the quarter.
The company has been able to keep working during the coronavirus crisis, as a supplier to essential businesses. However, it warned: 'The US economy is facing a major downturn in the coming months. Due to the coronavirus pandemic, weakness in the overall economy remains a significant risk factor in the last quarter of fiscal year 20202 as well as 2021.'
It added that some customers are asking for longer to pay, but currently all customer account balances are paid.
In the light duty PU foam tyre segment, demand exceeded expectations. Strong seasonal factors and a good economy for most of the quarter drove demand/
There were negligible sales of elastomer forklift and elastomer industrial tyres in the quarter, the company said. However, there is growing interest in its Elastothane 500 formulation.
Trade issues and low farm incomes continue to put the agricultural tyre sales business under pressure, Amerityre added.