Expansion of New Car Supply... Nexen Tire Achieves Strong 2Q Performance
Sales 763.8 Billion KRW... Largest Quarterly Record
Operating Profit 62.9 Billion KRW... Up 69.5% YoY
Effect of Europe Plant 2... Expansion of New Car Tire Supply
Nexen Tire achieved its highest quarterly sales ever in the second quarter of this year. This was due to increased sales volume based on pre-secured orders mainly in Europe, as well as an increase in the supply of original equipment (OE) tires.
On the 31st, Nexen Tire announced that it recorded sales of 763.8 billion KRW and an operating profit of 62.9 billion KRW in the second quarter of this year. Compared to the same period last year, sales increased by 10.5% and operating profit rose by 69.5%.
The expansion of sales volume and improvement of product lineup were key factors. Sales grew in all regions compared to the same period last year. In particular, sales volume increased based on pre-secured orders ahead of the winter tire sales season, mainly in Europe. The expanded supply of OE tires following the first quarter also had a positive effect.
They explained that production capacity was increased at the second European plant, which has been stabilizing since the first quarter, and operating profit also increased as sales of high-inch products grew.
From the second half of the year, the effects of the expansion of the second European plant are expected to appear in full. However, the normalization of sharply rising sea freight rates caused by raw material costs such as rubber, which have recently become more volatile, and the logistics crisis originating from the Red Sea, are seen as variables for second-half performance.
Going forward, Nexen Tire plans to enhance its brand awareness in the global market by expanding OE supply to premium brands, thereby securing stable demand for replacement tires (RE) and promoting both qualitative and quantitative growth.
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A Nexen Tire official said, "Efforts to strengthen product quality and technology to meet the expectations of global customers and to raise brand awareness are showing results," adding, "We will continue to strive to provide more customers with premium product experiences."
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