Seoul – Kumho Tire Co. Inc. suffered a 69.3% drop in pre-tax operating profit for the quarter ended 30 Sept on 16% lower sales.
Kumho's earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $15.5 million (€13.6 million) on sales of $566.6 billion, according to the company's third quarter investor relations documents, dropping the operating ratio five points to 2.7%.
The operating and ordinary results were both losses—$33.9 million and $60 million.
Kumho cited higher raw materials costs for the reduced operating profit and blamed the lower sales on poor performances in its foreign operations, especially in the Middle East, Latin America and Asia.
Revenue in Kumho's home market fell 5.5 percent to $198 million, while sales in China plunged 31.1% to $55.4 million.
Sales in North America rose 1.8% to $151.8 million on higher original equipment sales—reflecting increased North American auto sales—that offset lower replacement market business, Kumho said.
Business in Europe plunged 28.5% to $69.6 million.
Pre-tax operating income for the nine months ended 30 Sept was down 11.4% to $92 million on 9.9% lower sales of $1.77 billion. The ordinary result was a loss of $146 million, more than double the loss of the comparable 2017 period.