SEOUL, South Korea (June 17, 2005) — Kumho Tire Co. Inc. reported slightly higher operating income in the first quarter on 12-percent higher sales, fueled largely by increased domestic original equipment sales.
Overall sales—not counting results from its Nanjing Kumho Tire unit in China—grew to $417.5 million, as domestic OE sales climbed 20 percent, vs. 7.9 percent for domestic replacement and 4.1 percent for export.
The Seoul, South Korea-based firm's tire sales break down to 37 percent domestic and 63 percent export.
Pre-tax operating income grew 4.2 percent to $72.2 million while net income fell 41.4 percent to $16.6 million.
Of the firm's $247 million in export tire sales, 40.5 percent—or $100 million—were recorded in North America.
Kumho's first quarter results should translate into double-digit sales growth for the entire year, according to Korean stock analysts Dongwon Securities Co. Ltd.
Kumho reported operating and net income in fiscal 2004 of $137 million and $87.3 million on sales of $1.42 billion—not including results from its Chinese operations.