Kumho Tire Co., Inc. Business Report FY ended 2012 - MarkLines Automotive Industry Portal

Kumho Tire Co., Inc. Business Report FY ended Dec. 2012

Business Highlights

Highlights in FY2012

Financial Overview (Consolidated)

(in millions of won)

	FY2012 (ended Dec. 2012)	FY2011	Rate of Change	Remarks
Sales	4,070,643	3,915,875	4.0%	-
Operating income	375,346	193,653	93.8%	-
Net income	130,586	(26,854)	-	-

Contracts

-The Company will supply its Solus KH25 tires to the Dodge Dart, Chrysler's new compact sedan. The tires come in two sizes, 225/45R17 and 205/55R16. The Company's tires are currently being mounted on other Chrysler vehicles, namely the Sebring, Dodge Journey, Grand Cherokee, and Town&Country. (From a June 12, 2012 press release)

R&D

R&D Structure

Facility	Location	Overview
Kumho R&D Center (K.R.D.C)	Gwangju Korea	-Year established : 1981 -Developing tires for the domestic and global market
Kumho Tire America Technical Center (K.A.T.C)	Ohio USA	-Year established : 1990 -Developing tires for the North American OEM market and the aftermarket
Kumho Tire Europe Technical Center (K.E.T.C)	Birmingham U.K	-Year established : 1997 -Developing high-performance tires for the European market
Kumho Tire China Technical Center (K.C.T.C)	Tianjin China	-Year established : 2006 -Developing high-performance tires for the Chinese and European markets

R&D Expenditure (Non-consolidated)

(in millions of won)

	FY2012	FY2011	FY2010
Amount	80,555	68,953	50,049
% of sales	2.0%	1.8%	1.9%

Investment Activities

Capital Expenditure

-During 2012, the Company invested a total of 113,173 million won in its three plants in Korea.
-Between 2012 and 2014, the Company plans to invest 90,825 million won in plants and equipment, mainly for increasing production capacity at its Vietnam plant.