Tyres produced by Da Nang Rubber JSC (HoSE: DRC). The company's shares (HoSE: DRC) surged 5.4 per cent to end Wednesday at VND18,600 apiece. — Photo drc.com.vn

Tyre producer Da Nang Rubber JSC’s post-tax profit soared 123 per cent year-on-year to VND37.4 billion (US$1.6 million) in the first quarter of the year.

Pre-tax profit was VND46.8 billion, 96 per cent of its full-year pre-tax profit plan.

Revenue slid 2.4 per cent year-on-year to VND803 billion but production costs dropped 7.9 per cent as material expenses, especially oil prices, fell sharply.

In the first quarter of the year, oil prices lost two-thirds on lower demand for production caused by the COVID-19 pandemic.

In the second quarter, the company expects its revenue to fall 21 per cent year-on-year to VND652 billion and pre-tax profit will fall 19 per cent to VND37.7 billion.

The company plans to hold its annual shareholders’ meeting by April 30.

In 2019, Da Nang Rubber earned VND4 trillion in total revenue and VND313 billion in pre-tax profit, up 108 per cent and 177 per cent on-year, respectively.

The company shares (HoSE: DRC) surged 5.4 per cent to end Wednesday at VND18,600 apiece. — VNS