Higher operating profit, lower sales for Kumho
(Tire Business Report)
Seoul – Kumho Tire Co. Inc. reported a higher operating profit of 9 percent for the quarter ended 30 June on 10.5 percent lower sales.
Kumho attributed the earnings improvement – to $111.7 million (€85m), or 12.6 percent of sales – to the positive “tailwind” of lower raw materials costs. The tire maker blamed the sales drop – to $884 million – on the negative effects of a strong Korean won to other currencies.
The company said sales in North America have been “continually recovering” with reinforced promotion for small and mid-sized accounts. In Europe, sales were up slightly on pre-ordering for winter tires.
For the six months ended 30 June, Kumho reported operating profit of $196.1 million on sales of $1.73 billion, for an operating ratio of 11.3 percent. The profit was 13 percent higher than the same period last year, whiles sales were off 6.6 percent.
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