Kumho Tire reported third-quarter revenue of 1.11 trillion won ($825 million), nearly flat compared with the same period last year, while operating profit tumbled 38% to 108.5 billion won ($80 million). The operating margin contracted to 9.7% from 12.6% in the year-earlier quarter.
The South Korean manufacturer generated cumulative nine-month revenue of 3.54 trillion won ($2.63 billion), representing roughly 71% of its 5 trillion won ($3.7 billion) annual target. For the full year, the company anticipates premium passenger car and light truck tire sales above 18 inches will account for 46% of total revenue, up from 41.8% last year.
Sales performance varied significantly across regions. North American revenue reached 409.8 billion won ($304 million), driven by growth at Big3 automakers and increased supplies of electric vehicle and performance tires. European revenue declined to 284.2 billion won ($211 million) as original equipment volumes shrank for manufacturers including Mercedes-Benz, Volkswagen, Seat and Skoda. Chinese market revenue dropped to 78.9 billion won ($59 million) following currency depreciation and macroeconomic weakness.
The manufacturer is expanding its premium product portfolio with the Road Venture RT and ECSTA Sport series while launching new original equipment tires for Kia’s Tasma pickup and the PV5 electric van platform. Electric vehicle tire mix reached 22% in the quarter, maintaining momentum from earlier in the year when the segment comprised 14 global EV tire suppliers.
