Kumho Tire Q1 net losses widen as demand falls

Kumho Tire Co., South Korea's second-biggest tiremaker by sales, said Monday that its first-quarter losses widened from a year earlier on lower demand from major markets.

Kumho Tire's net losses reached 60.6 billion won ($54 million) for the three months ended March 31, compared with a loss of 15.4 billion won a year earlier, the company said in a statement.

"Lower demand from the United States and Europe hit a blow to our overall sales. Moreover, sharp declines in tire sales in China amid a row over the deployment of the Terminal High Altitude Area Defense system also drove down sales," the statement said. 

(Yonhap)

South Korean companies with operations in China have suffered declining sales due to countrywide local campaigns against Korean products.

China has opposed the US anti-missile system's installation in South Korea, arguing its powerful "X-band" radar could be used against it. Seoul and Washington have said it is aimed at countering missile threats from North Korea.

Kumho Tire shifted to an operating loss of 28.2 billion won in the first quarter from an operating profit of 15.1 billion won in the year-ago period. Sales fell 4.6 percent to 790.9 billion won from 701.8 billion won during the same period, it said. (Yonhap)