Kumho Tire's operating profit in the third quarter of this year fell by nearly 23% from a year earlier. The decline appears to reflect the impact of U.S. tariff measures and a fire at the Gwangju plant in May.
On Nov. 4, Kumho Tire said its third-quarter operating profit was 140.2 billion won, down 22.6% from the same period a year earlier. As a result, operating profit for the cumulative first to third quarters came to 430.2 billion won, down 1.6% from a year earlier. Third-quarter revenue was 1.1137 trillion won, also down 0.1% year over year. Reflecting this, cumulative revenue for the first to third quarters was 3.5412 trillion won.
Kumho Tire said, "Although sales and operating profit declined due to the fire at the Gwangju plant in May, we delivered relatively solid results at a time when uncertainty and volatility increased, including U.S.-driven tariff imposition and a slump in the automobile market."
Breaking down third-quarter sales by region, revenue in the Korea market was 186.8 billion won, down 9%. In contrast, North America revenue was 409.8 billion won, up 12.4%. Kumho Tire explained, "Thanks to the launch of new products focused on high-inch sizes and expanded supply of strategic models by region." Elsewhere, Europe revenue (284.2 billion won) rose 1.2%, while China revenue (78.9 billion won) fell 15.3%.
Kumho Tire said, "We set record-high sales and operating profit since our founding last year, stabilizing our financial structure and working to improve our business fundamentals," adding, "We plan to leap forward as a global premium brand by not stopping at external growth but by supplying premium products, expanding global distribution, and strengthening brand awareness."