The firm's light duty polyurethane foam tyres division is experiencing increased demand in golf and baggage cart applications. International sales from the division have been suffering because of the relative strength of the dollar. 'But,' the company said, 'recent weakening of the US dollar indicates that this headwind may be subsiding.'
Amerityre said its industrial tyre segment, had 'contributed negligible revenue' during the second quarter. It expects that some discussions with potential end users will eventually translate into sales.
Low farm commodity prices continue to hit sales in agricultural tyres. Projections suggest that farm commodity prices may continue to be weak for the course of the year, Amerityre said. It will launch a new tyre for hay balers that will be more durable than its current tyre.
The company added that it expects raw material prices to 'become a major headwind… putting pressure on our gross margins'. However, it is committed to maintaining R&D spending.