China’s Aeolus Tyre posted a 50.77% year-on-year drop in 2010 net profit to 153 million yuan, business news wires have reported, citing company filings.

Earnings per share are said to have fallen 50.79% to 0.41 yuan per share. The good news was that sales revenue rose 44.45% year-on-year to 8.12 billion yuan. However, this also means margins must have narrowed significantly.

Chinese manufacturers, like the rest of the tire manufacturing world, have suffered from the rising raw material prices (especially natural rubber) that have affected production costs in recent months. These inflated input costs go some way to explaining the most recent report’s dip in profitability.

Nevertheless, according to the reports, Aeolus plans to distribute cash dividends of one yuan (including tax) for every 10 shares held. (Tyres & Accessories)