Nexen Tire Q2 profit drops 17.9 pct on higher costs

SEOUL, Aug. 4 (Yonhap) -- Nexen Tire Corp., South Korea's third-largest tiremaker, said Thursday that its second-quarter operating profit dropped 17.9 percent from a year earlier mainly due to a hike in its raw materials costs.
Operating profit came to 27.2 billion won (US$25.6 million) in the April-June period, compared with 33.2 billion won a year earlier, the company said in a regulatory filing.
Sales, however, shot up 18.9 percent on-year to a quarterly high of 333.8 billion won, fueled by increased domestic and overseas demand.
The company didn't release its net profit for the second quarter.
"Improved quality, better brand image and productivity contributed to strong sales, but a spike in raw materials prices and unfavorable exchange rates hurt operating profits," the company said.
Nexen Tire said its sales of replacement tires jumped 20.4 percent in the second quarter from a year earlier, with shipments of ultra-high-performance tires soaring 24.6 percent.