Nexen Tire: Sales up 4.2% in Q2 2017, material costs hit profit
On the back of higher volumes, Nexen Tire reports t its net sales in the second quarter of 2017 rose 4.2 per cent year-on-year to KRW 514.1 billion (£350.4 million). Operating profit was, however, impacted by the high costs of raw materials in the first half of this year and fell 37.4 per cent to KRW 43.6 billion (£29.7 million). The operating margin decreased by 4.0 percentage points year-on-year to 7.8 per cent.
Nexen’s sales within Europe rose 16.2 per cent year-on-year to KRW 121.0 billion (£82.5 million). The tyre maker comments that rising demand in Western Europe pushed up sales in the quarter, and this is expected to continue into the second half of the year. At KRW 66.1 billion (£45.1 million) UHPT (ultra-high-performance tyre) sales accounted for 45.4 per cent of Nexen Tire’s European total.
Europe was home to 23 per cent of Nexen Tire’s total UHPT sales. Globally, these products accounted for 42.3 per cent of the company’s total net sales (Q2 2016: 44.3%) and 38.1 per cent of total volume (Q2 2016: 39.0 per cent). Sales of UHPT products declined 2.0 per cent year-on-year to KRW 217.4 billion (£148.2 million).
Further details about Nexen Tire’s Q2 2017 results can be found in the Tyrepress.com company profiles and reports section.