Global tire makers are enjoying a boom time mainly thanks to the decline in prices of natural rubber. Korean brands, however, are suffering a negative growth as their export competitiveness is weakened by the decline in the won’s value and the economic growth of China, the main export outlet for Korean-made tires, is slowing down.
The world’s largest tire maker Bridgestone posted sales of 1.85 trillion yen and operating profit of 237.7 billion yen for the first half of this year, up 6 percent and 6.6 percent, respectively, from a year ago. The No. 2 player Michelin also enjoyed a robust growth of 8.5 percent and 8.9 percent growth in sales and operating profit which stood at 10.4 billion euro and 1.2 billion euro.
In contrast, Hankook Tire suffered a 6.9-percent decline in sales to 3.10 trillion won in the first half of this year, with its operating profit falling by 21.0 percent to 404.1 billion won. Kumho Tire also saw its sales and operating profit decline by 12.3 percent and 50 percent, respectively, to 1.53 trillion won and 99.2 billion won.
