Kumho has summed up preliminary results for the third quarter
Kumho Tire has released its preliminary results for the third quarter of 2024, announcing sales of 1.115 trillion won ($810 million), a 14.1% increase compared to the same period last year.
Kumho, the second-largest Korean tire maker, has seen sales exceed 1 trillion won for the fourth consecutive quarter. The company notes that while the global automotive market is experiencing a slowdown, demand for tires is showing steady growth, particularly from end-consumers.
Kumho's operating profit for the third quarter was 140.2 billion won ($100 million), with an operating margin increase of 45.7 percentage points to 12.6%. This is attributed to the increased proportion of high-margin products, such as 18-inch and larger passenger car tires, in the company's sales structure.
In 2024, Kumho aims to achieve revenue of 4.56 trillion won ($3.3 billion), which could potentially allow it to surpass Maxxis as one of the world's largest tire manufacturers. Additionally, the company plans to increase the proportion of 18-inch and larger tires in its sales to 42% and the proportion of electric vehicle tires in its original equipment (OE) shipments to over 16%. In the third quarter, these figures were 41.8% and 14%, respectively.
"Currently, Kumho Tire is working to strengthen its position in the global market, including in Korea, by supplying premium tires, expanding its global distribution network, and enhancing brand recognition," the company said. "We are also focusing on developing and supplying tires for electric vehicles and accelerating our entry into the premium market, which will be facilitated by the launch of our new brand, EnnoV, created exclusively for the EV market."
Unlike its two Korean competitors, Hankook and Nexen, Kumho does not have a manufacturing plant in Europe. The company is currently considering localizing production in the region to expand its presence in both the OE and replacement markets. Additionally, Kumho is increasing the capacity of its plant in Vietnam.