Kumho jumps from net loss to net gain
Kumho Tire Co. Ltd. posted net income of 130.6 billion won on net sales of more than 4 trillion won for its fiscal 2012 ended Dec. 31, 2012. That compares to a net loss of 26.8 billion won on sales of 3.9 trillion won for fiscal 2011.
Based on the exchange rate on Dec. 31, 2012, Kumho recorded net income of $122.4 million on net sales of $3.8 billion in 2012. Its income-to-sales ratio was 3.2%.
Kumho's operating income rose 93.8%, from 193.6 billion won to 375.3 billion won.
Tire sales accounted for 82% of the company's total sales.
"In 2013, economic uncertainties from the previous year are expected to continue as a result of the economic crisis which started in Europe; lingering uncertainties about America's solution to deal with this problem; increasing volatility both politically and economically in Korea and overseas; and slow recovery efforts that center around newly developing economies," says Kumho.
"Although it is still a challenging business environment, 2013 will be a very important year for Kumho Tires, as it tries to complete the conditions of its workout program earlier than originally planned.
"Kumho Tires is swiftly responding to the changing business environment through continuous innovation activities and organizational improvement," says the company. "By stabilizing labor-management relations, executives and employees alike are cooperating for one single goal: to normalize management."
Kumho adds it will continue to invest in improving quality competitiveness while listening to feedback from customers. "Kumho Tires will not relent making positive changes amid rapid growth, ensuring it becomes a highly respected and sustainable company in the near future."