SEOUL, South Korea – Nexen Tire Corp. reported record revenue of $2.1 billion for fiscal year 2024 — up 5.4% from the previous year — driven by a gradual increase in average selling price and solid sales in Europe and Korea, despite weakness in North America.
Seoul-based Nexen is the 18th largest tire maker based on sales, according to Tire Business research.
Nexen's other results for fiscal year 2024 included:
• Operating profit of $126.3 million, down 7.9% from $137.2 million the year before, reflecting downstream distribution costs including logistics and warehousing.
• Net profit of $93 million, up 22.9% from $75.7 million in 2023.
Nexen's annual sales by region were 16% in Korea, 40% in Europe, 24% in North America and 20% in other markets. The company also promoted Hyeon Suk Kim to CEO during the fiscal year.
Nexen's fourth quarter results included:
• Revenue of $511.9 million, up 2.9% from $497.6 million the year before.
• Operating profit of $11.4 million, down 75.8% from $47 million.
• Net profit of $35.1 million, up 352.1% from $7.8 million.
The company said revenue was stable based on OE and replacement sales in European markets despite weak sales in North America, where distribution channels reorganization reduced Nexen's average selling price.
Nexen is aiming for revenue of $2.2 billion in 2025 and expected production capacity is expected to hit 50 million units by the end of the fiscal year with the expansion of its plant in Zatec, Czech Republic, and productivity improvement.
The company also said it expected unfavorable business conditions to continue in 2025, including U.S. monetary policy uncertainty and global trade tensions.
The cost of raw materials rose in 2024, mostly due to a sharp rise in rubber prices, but that could be offset by slower growth in China's tire industry caused by possible U.S. or European import restrictions on Chinese vehicles, Nexen said.
