Boulder City, Colorado — Amerityre, which makes polyurethane tyres for industrial applications saw sales rise 21.2% in the third quarter of 2017 compared to the same period in 2016, the firm said in an SEC filing.
Sales were $1.13 m for the quarter compared to $970,000 for the same period in 2016. Amerityre said that these results were "better than our expectations, as increased optimism for a better general economy improved demand from many of our customers."
Gross profit at the firm leapt by 38.2% or $122,000 to reach $440,000 in the 2017 quarter
"Our forecast for the remainder of fiscal 2017 anticipates continued depressed agricultural tyre sales, due to the continuing conditions which are depressing farm income."
Amerityre said that sales of polyurethane foam tyres to original equipment manufacturers, tyre distributors and dealers accounted for 95% of the third-quarter sales in 2017. It added that its efforts in product development and marketing focus on building relationships with original equipment manufacturers and tyre distributors.
The firm's polyurethane elastomer tyres division saw shipments of forklift tyres restart during the third quarter of 2017, and the firm added, "we continue to develop new elastomer tyre products for specific customer applications." Sales,were minimal in this market segment during the quarter . "but," it added, "we expect to see sales increase in the coming quarters as our products gain market acceptance."
In agricultural tyres, the downturn in farm commodity prices and farm income levels are hitting sales in the sector. The firm is also looking overseas to increase our market penetration for agricultural tyres, Amerityre added.