Vredestein Reports Small First Half Profit

AMSTERDAM, The Netherlands (August 6) - Vredestein reported an € 0.5 million net profit or € 0.06 per share over the first half of this year. One year ago the Dutch tire maker made an € 2.9 million loss. Turnover declined to € 126.7 million from € 129 million last year. Vredestein CEO Molenaar published these data four days earlier than planned to prevent speculation, as the Euronext Amsterdam listed stock price grew 40% in one day last week to € 4.89. The profits were made through cost savings and depreciation of equipment of tires. Earlier this year Vredestein decided to hive off its entire bicycle tire production to Thailand and India. Its cashflow increased € 0.7 million to € 8.5 million, while its debt position decreased and benefited from lower interest costs. Molenaar commented, that his company would favor a strong winter to fuel car tire sales. He declined to forecast profits for the second half, due to the current uncertain economic circumstances." Further he did not expect his company to pay out dividend over its fiscal year 2002. Traditionally the second half has a bigger impact on profit development at Vredestein. (FN)