SEOUL, South Korea—Kumho Tire Co. Inc. reported an operating profit of $8.6 million in the quarter ended Sept. 30, reversing an operating loss in the 2015 third quarter and recording its third straight profitable quarter in 2016.
The operating profit represents a 1.3-percent earnings ratio, based on the Korean tire maker's sales of 643.8 million for the quarter, a 1-percent drop from 2015.
Kumho cited reduced OE sales—due to vehicle makers' strikes in Korea—and lower global replacement tire demand for the lower sales.
Sales revenue in North America dropped 8.4 percent from the 2015 quarter to $144 million, a decline Kumho attributed to lower replacement market sales "due to market demand and intensified price competition," and educed OE sales because of discontinued car models that used Kumho tires as OE fitments.
For the nine months ended Sept. 30, Kumho's operating income was up 18.7 percent over 2015 to $59.2 million, while sales dropped 4.4 percent to $1.96 billion, yielding an operating ratio of 3 percent.
Kumho's sales in North America for the nine months were down 9.4 percent to $429 million.