Nexen Q1 results

In the first quarter of 2013, Nexen Tire Corporation achieved net sales of KRW 432.9 (£252.5 million), the Korean tyre maker reports. Almost 85 per cent of sales were generated in the aftermarket, with North America by far the company’s largest single geographic region; North American sales declined 13.0 per cent year-on-year to KRW 106.6 billion (£62.2 million). Sales in Europe, Nexen’s second largest market, grew 19.2 per cent year-on-year to KRW 87.2 billion (£50.9 million), and domestic market sales increased 14.4 per cent over the first quarter of 2012 to KRW 56.4 million (£32.9 million). Sales in China, at KRW 8.8 billion (£5.1 million), were 11.0 per cent down on a year earlier and other region sales increased 10.4 per cent year-on-year to KRW 112.1 billion (£65.4 million). Original equipment sales accounted for 15.6 per cent of Nexen’s total and grew 21.5 per cent year-on-year to KRW 68.6 billion (£40.0 million).

Gross profit rose 7.7 per cent year-on-year to KRW 120.4 billion (£70.2 million) while operating profit, at KRW 47.7 billion (£27.8 million), was down 3.6 per cent. Operating profit margin declined from 12.1 per cent in Q1 2012 to 11.0 per cent in the most recent quarter. EBITDA was KRW 71.7 billion (£41.8 million) and 9.5 per cent higher than a year earlier, while margin went down from 58.6 per cent to 16.6 per cent.