Nexen Tire Reports Q3 Operating Profit of 46.4 Billion Won, Down 11% Year-on-Year

On November 5, Nexen Tire announced that it recorded consolidated sales of 780.6 billion won and an operating profit of 46.4 billion won in the third quarter. Sales increased by 10.2% compared to the same period last year, while operating profit decreased by 11.1%.

The company explained that although a significant decline in operating profit was expected due to the imposition of a 25% tariff in the United States, it responded by raising prices, achieving solid sales and improved profitability compared to the previous quarter.

Nexen Tire maintained stable sales in both the European and domestic markets. In Europe, supply of original equipment (OE) tires for new car models increased, and sales of new products launched in response to stricter winter tire regulations expanded. In the domestic market, the summer peak season and strong rental sales led to the highest quarterly sales ever recorded.

In terms of profitability, the continued stabilization of key raw material prices, such as natural and synthetic rubber, as well as the Shanghai Containerized Freight Index (SCFI), contributed to an improved cost of goods sold ratio.

Nexen Tire is enhancing its product competitiveness through strategies tailored to regional demand characteristics. In Korea, the company launched the high-performance 'N'Fera Supreme EV Route' in August, which is compatible with both electric and internal combustion vehicles. In Europe and Japan, where seasonal tire usage is common, the company introduced the new winter tire 'Winguard Sport 3,' actively responding to local market needs.

In the United States, Nexen Tire strengthened its high-performance product lineup by introducing the proven high-performance summer tire 'N'Fera Sport' as original equipment for various European premium brands. The company is also working to expand its overseas markets through new business bases. Following Spain and Poland, Nexen Tire plans to establish new bases in Southeastern Europe, Central and South America, and the Middle East this year.

A Nexen Tire representative stated, "Despite the impact of tariff costs in the third quarter, our strong performance in terms of sales and profitability demonstrates the positive results of our strategies to address external uncertainties." The representative added, "We will continue to pursue external growth and profitability improvement through diversification of our product portfolio and optimization of production locations for our global supply."

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