SEOUL, South KoreaNexen Tire Corp.'s fiscal 2014 operating earnings rose 18 percent over 2013 on the effects of lower raw materials costs and slightly higher sales.
Operating income rose to $198.7 million on 1.7-percent higher sales of $1.68 billion. Net income rose 4.7 percent to $123.6 million.
The company said revenue growth was limited due to lower replacement market demand in the U.S. and Europe.
Tire production, on the other hand, jumped 7.1 percent to 34.9 million units.
Operating profit in the fourth quarter jumped 51.7 percent, Nexen said, on 7.7-percent higher sales. The company reported sales in North America were down slightly in the quarter due to customers' stocking up on tires from China ahead of the U.S. government's import duties decisions.
The tire maker anticipates volume growth to rebound this year after these inventories clear out.
Meanwhile, Nexen has established the Nexen Tire North & South American Head Quarters (AHQ) division, which will be responsible for managing its business throughout the Americas.
The new division will be headed by B.W. Lee and will be located at the Nexen Tire America headquarters in Diamond Bar, Calif.