Kumho Tire reported consolidated operating profit of 182.2 billion won ($126 million) for the second quarter of this year, up 4 percent from the same period a year earlier, the company announced July 20.
Sales rose 9.1 percent year-on-year to 1.33 trillion won, driven by expanded original equipment tire supply and stronger replacement tire sales — particularly of high-margin products — centered on North America and Europe. The result extended Kumho Tire's streak of quarterly sales exceeding 1 trillion won to 11 consecutive quarters, a run that began in the fourth quarter of 2023.
Sales growth in North America and Europe, along with increased demand for high-margin products including large-diameter and electric vehicle tires, drove the earnings improvement. Kumho Tire has maintained stable profitability by focusing its sales strategy on high-value-added products.
Tires of 18 inches or larger accounted for 47 percent of sales, while EV tires made up 25.1 percent of global OE sales. The company's full-year guidance calls for sales of 5.1 trillion won, a 47 percent share for 18-inch-and-above tires, and a 30 percent EV tire supply ratio.
"Even as cost pressures persist from US tariff policy and conflicts in the Middle East, we are continuing to expand global sales and pursue quality-driven growth centered on high-margin products," a company official said. "We will also push ahead without delay on construction of our Hampyeong factory and European factory to build out a full global production network linking Korea, Europe and North America, and use that foundation to sharpen our focus on expanding in global markets and improving profitability."
Meanwhile, Kumho Tire has been broadening its customer touchpoints through various marketing activities, including an extended launch campaign for its new Majesty Solus EDGE and Crugen GT Pro tires.
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