NEXEN TIRE posted its largest-ever quarterly sales in the third quarter this year, but operating profit fell about 11% from a year earlier. It logged steady sales in Europe, but that was not enough to offset the impact of U.S. tariffs.
On Nov. 5, NEXEN TIRE said its third-quarter operating profit came to 46.5 billion won. That was down 11.1% from a year earlier. Sales during the same period rose 10.2% to 780.7 billion won, the highest quarterly sales on record.
NEXEN TIRE said, "Third-quarter growth was driven by stable sales in Europe and the domestic market," adding, "In Europe, supply of original equipment (OE) tires increased mainly for newly supplied vehicle models, and sales of new products launched in line with strengthened winter tire regulations expanded."
It added, "In terms of profitability, despite the burden of U.S. item tariffs, stabilization of materials and supplies prices and strengthened cost control led to a 9.0% improvement from the previous quarter."
By region, sales in Europe were 320.8 billion won, up 17.5% from a year earlier. North American sales were 177.0 billion won, an increase of 1.6%. Sales in Korea rose from 115.2 billion won to 139.6 billion won, up 21.2%, the fastest growth.
NEXEN TIRE is strengthening product competitiveness through product strategies tailored to regional demand characteristics. In Korea, in Aug. it launched the high-performance product "N'Fera Supreme EV Route," which can be used for both electric vehicles and internal combustion engine vehicles, and in Europe and Japan, where seasonal tire use is active, it introduced the new winter product "WINGUARD Sport 3," responding to the local markets. In the United States, it also introduced the high-performance summer tire "N'Fera Sport," reinforcing its lineup of high-performance products.
It is also pursuing overseas market expansion through new business bases. Following Spain and Poland recently, this year it plans to establish new bases in Southeastern Europe, Central and South America, and the Middle East. This is part of strategic investments to grasp market trends and secure competitiveness in regions where tire demand is increasing.
NEXEN TIRE said, "We will continue external growth and profitability improvement by diversifying our product portfolio and optimizing the production locations of global supply volumes."