Nexen reports 10% higher sales in third quarter despite US tariff impact

Seoul - Nexen Tire has reported a 10% year-on-year increase in third quarter sales, despite the impact of item-specific tariffs in the US.

The Korean tire maker posted sales of KRW780.7 billion (€470 million) for the third quarter, up 10.2% year-on-year but down 3% compared to the previous quarter.

Earnings (EBITDA) for the period was marginally lower than the previous year at KRW111 billion, Nexen reported 5 Nov.

Operating profit came in at KRW46.5 billion, down 11% compared to a year ago but up 9% sequentially.

Nexen linked higher revenue to “steady sales performances in the European and Korean markets.”

In Europe, the tire maker expanded its OE tire supply for newly launched vehicles, said it saw “strong sales growth” in its new winter tires.

In Korea, the company posted its “highest-ever quarterly sales”, driven by peak summer demand and continued growth in the tire rental segment.

Overall, Nexen said third quarter OE demand recovered in Europe & North America compared to the first half of the year.

In the replacement segment, despite slowdowns in regions such as Russia and the UK, demand in Europe remained steady, while China showed stable growth.

Profitability improved over the previous quarter, bolstered by stable raw material prices and "stronger cost controls."

According to Nexen, prices for natural and synthetic rubber, as well as the Shanghai Containerised Freight Index (SCFI) remained on a downward trend, contributing to a lower cost of goods sold ratio.

Nexen also highlighted its efforts to enhance product competitiveness through region-specific strategies for local market demand.

The tire maker has also been expanding its international presence by establishing new sales bases.

Following the recent setup of new bases in Spain and Poland, the company plans to open additional hubs in Southeastern Europe, Latin America, and the Middle East this year.

These regional bases, Nexen said, will serve as “strategic footholds to capture growing local demand” and reinforce its competitive position in “key emerging markets.”

“The solid performance in the third quarter, even after factoring in tariff-related costs, indicates that our strategy for managing external uncertainties is yielding positive results,” said CEO John Bosco (Hyeon Suk) Kim.

The company, Bosco stressed, will continue to pursue growth through product portfolio diversification and the optimisation of global production operations.