South Korean Tire Producers Rally on Strong Demand, Low Costs

South Korean tire manufacturers enjoyed healthy earnings thanks to strong global demand for electric vehicles and new cars adding to expectations that the sector is likely to benefit from the upbeat outlook for the world’s automakers.

Hankook Tire & Technology Co., the country’s No. 1 player, on Friday reported an operating profit of 248.2 billion won ($194 million) on a consolidated basis in the second quarter, 41.6% higher than a year earlier, with sales up 11% to 2.3 trillion won. The profit beat analysts’ average forecast of 223.4 billion won. … Its smaller rival Kumho Tire Co. also said its operating profit surged by nearly 48 times to 88.1 billion won on a consolidated basis in the second quarter from a year earlier as sales grew 12.3% to 1 trillion won. …

Source: Korea Economic Daily