High-margin products, strong sales drive 44% earnings growth at Kumho Tire

Seoul – Kumho Tire has reported robust growth in 2024, helped by strong performance in major markets such as the US and the EU.

The Korean tire maker saw annual operating profit (earnings) increase 44% year-on-year to KRW591 billion (€392 million), on 12% higher sales of KRW4,538 billion, Kumho reported 6 Feb.

Revenue in the fourth quarter came in at KRW1,246 billion, up 17.5% compared to the year before, while operating profit stood at KRW153.2 billion.

This marks fifth consecutive quarter with sales exceeding KRW1,000 billion, according to Kumho.

The tire maker reported “steady sales growth” during 2024, “despite the continued global economic downturn and slowing demand in the finished vehicle market.”

This, it said, was achieved by expanding sales in both the global OE and replacement tire segments, with a focus on major markets such as the US and Europe.

In addition, the company increased profitability by improving value, particularly through high-margin products.

Kumho said it had developed “a stable profit structure through sales price management, and diversifying distribution channels.”

For 2025, the tire maker has set a sales target of KRW5,000 billion, representing a 10% growth rate.

To achieve this, the company said it planned to ‘expand into the global market’, strengthen its high-value added product portfolio and increase global production capacity.