2Q income rises while sales fall for Kumho
Kumho Tire Co. posted net profit of 52.6 billion won on net sales of 895 billion won for the second quarter ended June 30, 2014. That compares to income of 50.8 billion won on sales of 1 trillion won for the second quarter of fiscal 2013.
Based on the exchange rate on June 30, 2014, Kumho recorded net income of $52 million on net sales of $883.8 million in 2Q 2014. The company's income-to-sales ratio was 5.8%.
The company's 2Q operating income was up nearly 9%, from 103.9 billion won in 2013 to 113.2 billion won ($111.7 million) this year.
Kumho said global sales decreased because of the following:
* the strong won, and
* price decreases (in part due to a decrease in raw material costs).
In North America, sales have been "recovering," according to the company. In Europe, sales were down slightly due to pre-orders for winter tires. And in emerging markets, including China, sales were down not only because of the strong won, but also because of the "fierce competition."