Kumho Tire reports its first operating profit since 2016Kumho Tire returned to black in 2019 on improved cost efficiencies at its local and overseas factories and increased sales of high value-added products.
The last time the company reported an annual operating profit was in 2016.
Sales at the tire manufacturer, which is 45 percent owned by China’s Qingdao Doublestar, fell 7.4 percent to 2.37 trillion won ($1.97 billion) last year from 2.56 trillion won in 2018. Its 78.9 billion won operating loss in 2018 swung to a 37.3 billion won operating profit last year.
Kumho Tire said its earnings improved as it cut costs in all areas and made improvements at factories, adding that its diversity of clients and flexible market management helped balance strikes at local automakers.
The company’s earnings have been steadily improving after being acquired by Qingdao Doublestar in 2018.
By Ko Jun-tae