From this figure, Matador’s rubber division recorded earnings of SKK 3.52 billion (£70.3 million), and of this, 78% was generated via the company’s M-Pneu tyre division.
During the three-month period, the group reached a pre-tax profit of SKK 296 million (£5.9 million), SKK 47 million (£938,000) more than during January to March 2006. The company’s rubber business earned SKK 278 million (£5.5 million) and its automotive division SKK 18 million (£359,000). Profit-to-sales ratio reached 7.3%, attributable largely to lower operating costs at the beginning of the year.
During the period, the group invested almost SKK 168 million (£3.34 million) in machinery, and equipment and SKK 63 million (£1.3 million) was invested in research and development. By the end of March 2007, the group employed 5,530 employees, including 50% of those employed at the Omskshina joint venture plant.
Shortly after the first financial quarter ended, Continental AG acquired a 51% shareholding in Matador’s rubber division, a move Conti believes will facilitate its expansion in Eastern European markets.
