NEXEN TIRE Reports Third-Quarter Results; Builds a Foundation for Growth, Focusing on Europe and High Value-added Products
– Q3 sales recorded 708.5 billion KRW, a 2.3% increase compared to the same period last year
SEOUL, South Korea, Oct. 30, 2024 – NEXEN TIRE, a leading global tire manufacturer, announced its 3Q24 financial results, which included KRW 708.5 billion in sales and KRW 52.3 billion in operating profit. This represents a 2.3% increase in revenue over the same period last year, maintaining the 700 billion Won range for two consecutive quarters and solidifying the foundation for continuous growth.
The revenue growth in the third quarter was primarily driven by higher sales in the European market, which grew by 11.9% year-on-year. Europe’s replacement (RE) tire market saw strong winter tire sales during the peak seasons of 2Q24 and 3Q24. Despite a slowdown in the Europe market, original equipment (OE) tire supply also remained stable, thanks to the company’s expanded supply to premium brands and increased brand recognition through marketing efforts such as the Manchester City partnership.
The expansion of the second European plant, which began operations earlier this year, is expected to fully demonstrate its effects next year. The plant is continuing to ramp-up, with the goal of being fully operational by the end of 2025.
High value-added products, such as 18-inch and larger tires, accounted for 35.9% of sales, a 3.9 percentage point increase from the same period last year. This success demonstrates the company’s effective strategy for meeting the rising demand for SUVs and premium vehicles. NEXEN TIRE has been focusing on producing 18 inch and larger products, with the second European plant playing a crucial role in supporting the production of 18 inch and larger products as it reaches full operational capacity.
In its 3Q24 earnings announcement, NEXEN TIRE also shared progress on its OE tire supply, R&D achievements, and quality competitiveness improvements. In the third quarter, the company began supplying tires for seven new vehicle models, including the Kia EV3 and Renault Korea Grand KOLEOS, bringing the global to 118.
In R&D, the company continues to accelerate the digital transformation of tire development by leveraging Artificial Intelligence (AI) and virtual reality (VR) technologies. NEXEN TIRE has established virtual tire modeling and AI-based performance prediction systems through XAI (eXplainable AI). Additionally, the recently introduced High Dynamic Driving Simulator, the first of its kind in the domestic industry, is expected to elevate the virtual development process. The company has also implemented AI-based automated product inspection systems to enhance precision in tire production and strengthen its quality competitiveness. These cutting-edge technologies will help further solidify partnerships with global automakers.
“By achieving over KRW 700 billion in revenue for two consecutive quarters, we have laid a stable foundation for growth,” said Travis Kang, Global CEO of NEXEN TIRE. “We plan to meet market expectations by continuing our ramp-up at the second European plant and maintaining consistent R&D investments.”