NEXEN TIRE announced on the 30th that its operating profit in the second quarter was 42.6 billion won, a decrease of 32.2% compared to the same period last year. NEXEN TIRE explained, "While shipping costs have decreased in terms of expense, the high raw material market prices from the end of last year have continued to be reflected in costs." However, it noted that major raw material market prices have been on a downward trend since the beginning of this year, predicting that profitability will improve in the second half.
Sales in the second quarter amounted to 804.7 billion won, an increase of 5.36% compared to the same period last year. Following the first quarter (771.2 billion won), it marks the highest figure for two consecutive quarters. Regarding this growth, the company stated, "The increase in production volume at the European factory has been reflected, and successful sales strategies tailored to regional characteristics have led to a steady increase in sales in major regions."
Thanks to strengthening partnerships with major automobile manufacturers, the company proactively secured volume, leading to increased sales in both the new and replacement markets. The sales volume, which temporarily decreased due to management difficulties among trading partners in the second half of last year, has recovered, and the expansion of sales in newly secured distribution channels has shifted U.S. sales trends to growth. It also achieved the highest sales volume ever in the Australian and Japanese markets.
Regarding tariffs in the U.S., it is expected that the effects of price increases in the U.S. market will be realized starting in the second half. NEXEN TIRE stated, "We plan to recover the impact on revenue by transitioning to a high-margin product-focused portfolio and redistributing global volume," adding that it intends to "monitor fluctuations in the trade environment due to ongoing trade negotiations by country and respond flexibly."