Seoul – Kumho Tire Co. Inc. reported an operating profit of $8.6 million (€8 million) in the quarter ended 30 Sept, reversing an operating loss in the 2015 third quarter and its third straight profitable quarter in 2016.
The operating profit represents a 1.3% earnings ratio, based on the Korean tire maker's sales of 643.8 million for the quarter, a 1% drop from 2015.
Kumho cited reduced OE sales – due to vehicle makers' strikes in Korea – and lower global replacement tire demand for the lower sales.
Sales revenue in North America dropped 8.4% from the 2015 quarter to $144 million, a decline Kumho attributed to lower replacement market sales "due to market demand and intensified price competition," and reduced OE sales because of discontinued car models that used Kumho tires OE.
For the nine months ended 30 Sept Kumho's operating income was up 18.7% over 2015 to $59.2 million while sales dropped 4.4 percent to $1.96 billion, yielding an operating ratio of 3%.
Kumho's sales in North America for the nine months was off 9.4% to $429 million.
