TYRE maker Sameer forecast strong profits this year after full-year profit more than doubled in 2012 on a combination of higher sales, lower financing and raw material costs.
Pretax profit jumped 103 per cent to Sh301 million and the company on Friday predicted even better results this year after a broadly peaceful election earlier this month.
The company also said it expected increased sales within the five-member East African Community trade bloc which covers Uganda, Tanzania, Burundi, Rwanda and Kenya.
But Sameer cautioned it faced significant pressure from cheap imported tyres.
"In 2012 we continued to experience significant upward pressure on our energy costs, but this was largely offset by a 10 per cent reduction in the cost of imported raw material inputs ... and a largely stable US dollar/Kenya shilling exchange rate," Sameer said in a statement.
The company's shares rose as much as 3 per cent before paring gains to trade 0.9 per cent lower at 5.40 shillings by 0950 GMT, driven lower by profit taking, said Brenda Kithinji, an analyst at Standard Investment Bank.
"Its probably someone who was trying to get out at a favourable price," said Kithinji.
Sameer said its net finance costs fell to Sh34 million from Sh112 million in 2011.
Turnover rose 8 per cent to Sh4 billion, while earnings per share rose to 68 cents from 35 cents.
Sameer said it would pay a final dividend of 25 cents a share.