Higher operating profit, lower sales for Kumho

SEOUL, South Korea—Kumho Tire Co. Inc. reported a higher operating profit of 9 percent for the quarter ended June 30 on 10.5 percent lower sales.

Kumho attributed the earnings improvement—to $111.7 million, or 12.6 percent of sales—to the positive “tailwind” of lower raw 

materials costs. The tire maker blamed the sales drop—to $884 million—on the negative effects of a strong Korean won to other currencies.

The company said sales in North America have been “continually recovering” with reinforced promotion for small and mid-sized accounts. In Europe, sales were up slightly on pre-ordering for winter tires.

For the six months ended June 30, Kumho reported operating profit of $196.1 million on sales of $1.73 billion, for an operating ratio of 11.3 percent. The profit was 13 percent higher than the same period last year, whiles sales were off 6.6 percent.

http://www.rubbernews.com/article/20140829/NEWS/140829948/higher-operating-profit-lower-sales-for-kumho