Kumho Tire posts 30.4% increase in 2014 net profits, helped by better Q4

Results supported by an increase in sales of company's winter tyres, as well as original equipment (OE) tyres.

South Korea's Kumho Tire today (5 February) revealed its annual financial results for 2014, showing a 30.4% year-on-year (y/y) increase in net profits. According to a public disclosure notice posted on the Korea Stock Exchange website, Kumho's total net profits stood at KRW3.44 trillion (USD3.2 billion) last year, compared with KRW3.7 trillion in 2013. Operating profit also rose, by a modest 3.6% y/y to KRW358.54 billion, compared with KRW345.9 billion in 2013. However, sales revenues fell from KRW3.7 trillion in 2013 to KRW3.44 trillion last year, representing a decline of 7.1% y/y. Total assets at the end of the financial year were KRW4.86 trillion, while liabilities were KRW3.5 trillion. During the final quarter of 2014, Kumho Tire registered a 57.1% y/y surge in net profits to KRW12.11 billion, although operating profits and sales revenues slid by 15.6% y/y to KRW81.3 billion and 10% y/y to KRW836.1 billion, respectively.