Boulder City, Nevada — Polyurethane tyre maker, Amerityre saw sales fall by around 20% in the third quarter of 2016 to $937,000, compared with $1.2m in the same period in 2015.
Gross profit declined by 6% to $313,000 in the period, according to a filing with the US Securities and Exchange Commission. The company operates in three segments: closed-cell polyurethane tyres, polyurethane elastomer forklift tyres and agricultural tyres.
The closed-cell polyurethane tyres segment sells to original equipment manufacturers, distributors and dealers and accounts for the "majority of our revenue," the firm said. It is focused on creating unique product solutions for customers with specific tyre performance requirements, Amerityre added.
Polyurethane elastomer forklift tyres will be relaunched in Q4 2016, Amerityre said. "We expect sales in this market segment to increase in the coming quarters as new products are introduced and gain market acceptance.
"The agricultural tyres business faces a tough year as sales of agricultural tyres are being hit by the downturn in farm commodity prices. This has reduced farm income levels and available money for investment in equipment.
"Our experience is consistent with the reports provided by large agricultural equipment suppliers, several who have announced expectations for another challenging year in 2016.
"Despite growing market acceptance of our pivot tyre and seeder tyre technologies, financial considerations have forced potential agricultural tyre customers to delay purchases. Given this backdrop, we are not anticipating dramatic agricultural sales gains for FY 2017 compared to FY 2016.
"We continue to pursue additional distribution relationships, both domestically and internationally, to increase our market penetration for our agricultural tyres. We have found that the strength of the US Dollar versus other foreign currencies has negatively impacted our international business. We expect that exchange rate effects will continue to dampen our international sales efforts in the coming quarters," the firm said.