Kumho Tire, 2Q Operating Profit 151.5 Billion KRW... Profit Margin Up 72% YoY

Kumho Tire announced on the 30th that it recorded provisional results of consolidated sales of 1.1319 trillion KRW and operating profit of 151.5 billion KRW for the second quarter of 2024.

Kumho Tire's sales for the second quarter reached 1.1319 trillion KRW, up 12.7% compared to the same period last year, marking the second highest performance in the company's history for the second quarter. This was achieved through the combined growth of new car (OE) tire supply expansion and the replacement (RE) tire market, including high-profit tires.

Additionally, the operating profit margin rose 72.0% year-on-year to 13.4%, achieving over 13% operating profit for three consecutive quarters. In particular, Kumho Tire continues its growth by expanding the sales ratio of high-performance vehicles and high-profit products, increasing the sales proportion of high-value-added products such as tires sized 18 inches and above, thereby enhancing profitability.

Kumho Tire set its annual sales target at 4.56 trillion KRW, presenting business guidance including achieving a 42% sales ratio of high-inch products of 18 inches or more and securing over 16% of EV tire share based on global OE sales. According to the first half results, sales of high-inch products reached 40.8%, and the EV tire OE supply ratio increased to 12% from about 9% last year due to the expansion of new vehicle models.

This year, Kumho Tire is driving its premium market strategy by launching ‘EnnoV’, an exclusive brand for electric vehicles. Following the launch of EnnoV Premium in March, new products such as EnnoV Winter and EnnoV Supermile are scheduled for release in the second half of the year, along with premium new products like Majesty X, which will improve the profitability-focused product portfolio.

Furthermore, Kumho Tire is reviewing investment in new global factories to expand new OE tire models in Europe and respond to steady demand for replacement (RE) tires. As the existing Vietnam plant stabilizes its operations, an increase in production volume and expansion of global tire production capacity and efficiency are expected.

This content was produced with the assistance of AI translation services.