UHP Tire Sales Drive Nexen 2Q Results in North America
Net sales for Nexen Corp. were up more than 5% for the second quarter of 2016 compared to last year. The tire maker recorded sales of 493.2 billion South Korean won, up from 467.1 billion won in 2015.
Operating income was 69.5 billion won, up from 55.7 billion won a year earlier.
The company did not report net income for the quarter, or for its year-to-date figures.
Sales in North America increased from 120.6 billion won in the first quarter of 2016 to 122.7 billion won in the second quarter. That’s down from the 131.2 billion won from the same period a year ago.
The sales in North America were driven by the tire maker’s ultra-high performance tires. In the second quarter, 51% of the sales in North America were of UHP tires — 62.1 billion won compared to 60.6 billion won for non-UHP tires. The company referred to it as the “fast expansion” of UHP tires.
Just how big is that expansion? Nexen sales of UHP tires in North America during the quarter almost matched UHP tire sales in Korea, Europe, and China combined (63.1 billion won). And all three of those regions increased their UHP tire sales year-over-year as well.
Overall, Nexen’s 219.5 billion won in UHP tire sales represented 44.3% of the company’s net sales for the second quarter.