Nexen Tire sales, profit increases in Q2

During the second quarter of 2012 Nexen Tire achieved net sales of KRW 433.3 billion (£242.8 million), the Korean tyre maker reports. This result represents year-on-year growth of 29.8 per cent. Gross profit, at KRW 118.6 billion (£66.4 million), was up 49.2 per cent year-on-year and a margin of 27.4 per cent was reached. Operating profit amounted to KRW 51.8 billion (£29.0 million), up 90.1 per cent year-on-year, and a margin of 12.0 per cent was achieved. Ordinary profit came to KRW 42.7 billion (£23.9 million), 51.8 per cent higher than in the corresponding quarter of 2011. EBITDA, at KRW 72.3 billion (£40.5), was up 62.2 per cent year-on-year and had a margin of 16.7 per cent.

North America remained the tyre maker’s largest market, with 32.3 per cent of all sales generated in this region. European sales accounted for 15.9 per cent of sales, down from 18.9 per cent a year ago, and 11.9 per cent of sales were made in the Korean market. China continues to be a relatively small regional market for Nexen, with only 2.3 per cent of total sales made there. Original equipment sales accounted for 14.0 per cent of the total. The company notes that sales of its UHP tyres amounted to KRW 143.1 billion (£80.2 million) or 32.9 per cent of total net sales in the second quarter of 2012; volumes rose 0.5 per cent year-on-year and 42.5 per cent of all UHP tyre sales were made in North America.