SEOUL, South Korea (Aug. 28, 2014) — Kumho Tire Co. Inc. reported 9-percent higher operating profit for the quarter ended June 30 on 10.5-percent lower sales.
Kumho attributed the earnings improvement — to $111.7 million, 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 also 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 June 30, 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 year-ago period, whiles sales were off 6.6 percent.