Even as Car Sales Falter, Tires Keep Rolling... Kumho Tire Operating Profit Up 46% YoY

Operating Profit 142 Billion KRW... 45.6% Increase YoY
Rising Replacement Demand and Strong Sales of Large-Diameter Tires

Kumho Tire recorded an operating profit of approximately 140 billion KRW in the third quarter of this year, achieving over 40% growth compared to the same period last year. Although automobile demand was somewhat sluggish, demand expanded mainly for replacement tires (RE), and the proportion of high-inch sales with higher profitability increased.

On the 29th, Kumho Tire announced preliminary consolidated results for the third quarter of this year, with sales of 1.115 trillion KRW and an operating profit of 142 billion KRW. Compared to the same period last year, sales increased by 14.1%, and operating profit rose by 45.7%. During the same period, the operating profit margin also improved from 9.8% to 12.6%.

Although the global finished car market continues to experience demand slowdown in the second half of the year, the tire market has steadily grown as demand increased centered on RE. Additionally, the increase in the sales proportion of high-inch products of 18 inches or more improved profitability, resulting in a double-digit operating profit margin.

Kumho Tire had previously announced this year’s targets, including ▲sales of 4.56 trillion KRW ▲a sales proportion of high-inch products of 18 inches or more at 42% ▲and securing more than 16% of electric vehicle (EV) tires in global new car tire (OE) sales. As of the third quarter, sales have already reached 72% of the target, and the sales proportion of high-inch products and the OE supply proportion of EV tires recorded 41.8% and 14%, respectively.

A Kumho Tire official explained, "We are considering investment in new global factories to respond to the expansion of new OE models in Europe and solid RE demand," adding, "As the existing Vietnam factory enters stable operation, an increase in production volume is expected along with the expansion of global tire production capacity and improved efficiency."

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