Boulder City, Colorado — Amerityre, which makes polyurethane tyres for industrial applications, experienced a fall in sales of 31% to $934,000 for the third quarter of 2017.
The company’s gross profit in the 2018 quarter was down 36% at $278,000, compared with $440,000 in the on the 2017 period.
The company’s light duty polyurethane foam tires division experienced increased demand in the 2018 quarter. This was for golf cart and baggage cart tyres . The company added in a filing that the majority of its sales are to domestic customers. This is because exchange rates and high freight costs have hit international sales.
The firm’s polyurethane elastomer industrial tyres experienced limited interest in the quarter. OEMs have not approved the tyre to replace their current offering, said the firm. The company added that the tyre is only available in one size and this limits its potential market.
Finally, things look tough for the agricultural tires division. The company said it expected difficult trading conditions to continue for the rest of 2018. Amerityre added that it had held conversations with farmers which suggest that that farm commodity pricing is expected to remain challenged for fiscal year 2018