Kumho Tire Reports Operating Profit of 1.8 Billion KRW in Q2, Down 83.8% Year-on-Year

[Asia Economy Reporter Ryu Tae-min] Kumho Tire announced on the 16th that its consolidated operating profit for the second quarter of this year was 1.8 billion KRW, a decrease of 9.6 billion KRW (83.8%) compared to the same period last year. Sales revenue increased by 41.1% to 894.1 billion KRW from 633.6 billion KRW in the same period last year.

The operating profit maintained a positive trend following 500 million KRW recorded in the first quarter. The operating profit margin fell by 1.6 percentage points (p) to 0.2% compared to 1.8% in the same period last year.

A Kumho Tire official explained, "Despite adverse management environment factors such as rising raw material costs and freight charges, we maintained a positive operating profit trend by expanding the proportion of global high-inch sales, increasing sales revenue, and raising unit prices."

Kumho Tire plans to increase sales through expanding supply volumes to domestic and overseas automobile manufacturers and diversifying sales channels. Additionally, it stated that it will improve profitability by expanding the sales proportion of high-margin products, managing sales prices by region, and reducing internal costs.