SEOUL, South Korea (May 7, 2012)—Kumho Tire Co. Inc. reported 42-percent higher operating income in fiscal 2011 on 10.9-percent higher sales, but the tire maker was $24.3 million in the red on a net basis, its fifth straight year in the red.
Operating earnings grew to $167.5 million, or 4.7 percent of the $3.54 billion in sales, according to data posted on the firm's website. The net loss was 47.4-percent smaller than in fiscal 2010.
Kumho did not provide any commentary on the results, which showed the cost of sales rose faster than sales, resulting in a low gross profit, but selling and administrative costs fell 8 percent, yielding the improved operating income.
The data also show significantly lower non-operating expenses, which resulted in pre-tax earnings of $18.9 million, but a nine-fold jump in income taxes paid left Kumho in the red on a net basis.