Kumho in the red for second straight year

ERJ staff report (TB)

Seoul, South Korea -- Kumho Tire Co. Inc. reported a net loss of KRW 203 339 million (Euro 103 million) for the 12 months to December 2008 despite higher gross profits and sales.

The net loss is the second consecutive for the company, which reported 13.8 percent higher sales of KRW2.385 million million (euro 1207 million). The operating earnings fell 63.7 percent to KRW 36.2 million, according to data presented to the London Stock Exchange.

Kumho's sales slumped measurably in the fourth quarter, with unit volume during that period down 18.7 percent. Sales revenue slid only 5.2 percent as the value of firm's export shipments from South Korea dipped only 1.3 percent, in part due to Kumho's shifting exports more heavily toward Asia and away from North America and Europe.

For 2009 Kumho is projecting 17.4 percent growth for the parent company - i.e., not including the firm's Chinese and Vietnamese manufacturing businesses. The firm also expects operating profits to rebound and to cut the net loss nearly to zero.

Kumho did not disclose a forecast for its consolidated activities.

From Tire Business (A Crain publication)

Corporate statement on London Stock Exchange