Goodpack's revenue dipped 3% despite fleet expansion

Blame it on weak tyre demand.

According to CIMB, revenue was 3% lower qoq, despite fleet growth. Management attributed the weak showing to poor demand from tyre customers, who reported that end-consumers in developed markets were delaying their purchase of new tyres and extending the useful life of their tyres.

In Europe, tyres for trucks and buses especially, were not moving. As such, Goodpack’s box fleet was not fully maximised. Poor utilisation was the key culprit for the earnings shortfall.

Here's more from CIMB:

Operating margins (36.4%) actually improved qoq as logistics costs were muted.

Management guided that recovery is delayed to FY14. April’s sales suggest that 4Q revenues are flat qoq. There are some signs that US and China business are picking up, but not by significant volumes.