Kumho’s second quarter sales amounted to 429 billion won (£241.094 million), lower than the 469 billion won figure that was widely expected. At the same time operating profit of 14 billion won (£7.868 million) was said to be similarly disappointing compared with market estimates of 40 billion won. Operating profit fell by 70.5 per cent year-on-year and 45.2 per cent quarter-on-quarter.
Kumho Tire is to voluntarily recall 78,321 light truck tyres sold in the North American market due to blisters on sidewalls. The tyres to be recalled are nine types of product under the Venture HT 824 and Venture AT KL78 series. They were manufactured in Kumho Tire’s factory in Nanjing, China, exclusively for the U.S. and Canadian markets.
(Akron/Tire Review) Kumho Tire USA Inc. has named Kelvin Oh as its new sales coordinator and general manager. In his new post, Oh is responsible for coordinating long-term strategy and sales plans for Kumho in the US and communicating market information to company headquarters in Seoul, South Korea. Most recently, Oh has been North America sales team leader based in Seoul.
Micheldever Tyre Services Ltd (MTS), the UK’s largest independent tyre distribution company, has signed a five-year distribution agreement with the UK arm of the leading Korean manufacturer, Kumho Tires. The distribution deal is the company’s first ever long-term agreement in the UK tyre market and gives MTS exclusive rights over Kumho’s portfolio of car, 4×4 and van products in Great Britain. The announcement marks the culmination of a successful nine-year association between the two companies. Over the last three years, they have been developing the Ecsta Performance Centre (EPC) programme, dedicated to specialist Kumho tyre sales and support.
(Akron/Tire Review) Kumho Tire Co. has officially begun production at its new tyre plant in Tianjin, China, near Beijing. The $210 million plant will have the capacity to produce some 5,25 million tyres per year. Some 50 per cent of the production from the plant will be exported, according to Kumho, while the other half will serve the Chinese automotive and replacement tyre markets.
The Korea Herald has reported that union workers at Kumho Tire Co. plants in South Korea have been “on a partial strike” since last week. The union workers are seeking a 9 per cent wage increase among the 52 “terms” they are demanding from the tyremaker, said the report. The partial strike is apparently part of broader job action at a number of major South Korean manufacturers, including Hyundai Motor, Ssangyong Motor, a number of oil and construction companies, and other major employers.
(Akron/Tire Review) Kumho Tire USA Inc. has hired three new account managers. Wally Holst was brought in as account manager covering Colorado, New Mexico, Arizona, Nevada and El Paso, Texas. Mike Mannina was hired as account manager for Kumho’s corporate accounts. Charles van Heusden was named account manager for Florida.
(Akron/Tire Review) Kumho Tire USA Inc. will increase prices on its passenger, light truck and commercial truck tyres, effective 1 July. Prices will increase up to 7 per cent, depending on tyre model. David Hudrlik, vice president and director of sales, said continuing price increases for raw materials and rising transportation costs were reasons for the increase.
Richard Page, managing director of Hankook Tyre UK has been elected as ITMA’s new association president with immediate effect. The decision was made at this year’s Association AGM held on 12 April. Richard takes over from Steve Tidmarsh MD of Kumho UK who completed a two-year term of office.
Although Hankook is a long-standing ITMA member this is the first time the company has held the Association Presidency. In his acceptance statement Page welcomed closer cooperation with the BTMA and the newly formed TIF:
(Akron/Tire Review) Reports out of Atlanta indicate that Kumho Tire USA Corp. is considering opening a new and larger warehouse and distribution centre in Henry County, Ga.
(Akron/Tire Review) Kumho Tire Co. has broken ground for its third plant in China, a $150 million facility to be located in Changchun in the northeast. Once operational in 2007, the plant will have an annual capacity of 3.15 million tyres. “We aim to become a leader in the Chinese market as well as one of the world’s top five tyremakers,” said Kumho Asiana Group chairman Park Sam-koo at the groundbreaking ceremony in Changchun.
Kumho has recently introduced a number of new additions to its performance line-up. Launched last year, the ECSTA SPT range will be available in no less than 72 sizes by this summer, most with extra load capability and Y speed rating. The new tyre incorporates a number of features designed to enhance the driving experience. These include patented rotate wear indicators enabling visual monitoring of tread life and special notches to protect against water turbulence through the tyre’s longitudinal grooves.
Kumho Asiana Group has launched a new corporate identity to coincide with the celebration of its 60th anniversary. The Group’s new design was unveiled by its chairman, Sam-Koo Park, during a ceremony at Kumho Art Hall in Seoul, Korea in the presence of the presidents of its associate companies and more than 300 directors and staff.
(Akron/Tire Review) Kumho Tire Co.’s net profit fell 4.5 per cent in the first quarter of 2006 vs. the same period of 2005, the company reported. Operating profit for the first quarter dropped 41.9 per cent, while revenue slipped 0.1 per cent.
South Korea’s Kumho Tire Co. said today its net profit dropped 4.52 per cent in the first quarter from the previous year. Between January and March, net profit amounted to 14.92 billion won (£9 million), compared to 15.63 billion won a year earlier, said the company. Operating profit plunged 41.85 per cent to 25.39 billion won (£15.3 million) from 43.66 billion won a year ago, and revenue inched down 0.1 per cent to 428.52 billion won (£258.4 million) from 428.09 billion won, the tyre maker said.
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