Nexen Tire said in a filing on the 29th that, on a consolidation basis, it posted revenue of 838.3 billion won and operating profit of 54.2 billion won in the first quarter this year, based on preliminary figures. Despite headwinds such as slowing global demand, Nexen Tire logged its highest-ever quarterly results.
Expanded sales in major markets such as Europe and the United States are cited as factors behind the improved results. Nexen Tire said European sales increased as it secured new customers on the back of stabilized production at its European plant, and although demand in the finished-car market slowed, sales expanded as it increased its lineup of original equipment (OE) tires.
An increase in sales of high value-added products also contributed to the improvement. Not only premium OE, but also the share of high value-added products such as for sport utility vehicles (SUVs) and electric vehicles increased. The sales ratio of 18-inch and larger, high-inch tires also reached 40%.
Nexen Tire is pursuing a strategy to diversify global sales and strengthen its growth base by expanding its sales regions to emerging growth markets. To that end, it is expanding its product portfolio. In the first quarter, it launched the high-performance tire "N'Fera Sport" and the all-weather tire "N'Blue 4Season 2."
It also plans to bolster mid- to long-term competitiveness by expanding regional distribution centers (RDCs) in key sales hubs and advancing its artificial intelligence (AI)-based virtual development process. A Nexen Tire official said, "We will flexibly respond to market changes and continue to strengthen product competitiveness and operational efficiency."