Kumho cuts net loss in half; sales up 11%

ERJ staff report (TB)

SEOUL, South Korea (May 7, 2012) - Kumho Tire Co. Inc. reported 42-percent higher operating income in fiscal 2011 on 10.9-percent higher sales, but the tyre maker was $24.3 million in the red on a net basis, its fifth straight year in the red.

Operating earnings grew to $167.5 million, or 4.7 percent of the $3.54 billion in sales, according to data posted on the firm's website. The net loss was 47.4 percent smaller than in fiscal 2010.

Kumho did not provide any commentary on the results, which showed the cost of sales rose faster than sales, resulting in a low gross profit, but selling and adminstrative costs fell 8 percent, yielding the improved operating income.

The data also show significantly lower non-operating expenses, which resulted in pre-tax earnings of $18.9 million, but a nine-fold jump in income taxes paid left Kumho in the red on a net basis.

From Tire Business (A Crain publication)