Recently, Nexen Tire reported that its operating revenue in 2024 reached a record high of US$2.1 billion, an increase of 5.4% over the previous year, driven by a gradual increase in average selling prices and solid growth in the European and Korean markets.
The company's operating profit in 2024 is $126.3 million, down 7.9% from 2023, reflecting higher downstream distribution costs, including logistics and warehousing.
Among them, the fourth quarter operating income was US$511.9 million, a year-on-year increase of 2.9%; operating profit was US$11.4 million, a year-on-year decrease of 75.8%.
By region, Nexen's annual sales in 2024 were 16% in South Korea, 40% in Europe, 24% in North America and 20% in other markets. The company also promoted John Bosco (Hyeon Suk) Kim to CEO during this fiscal year to help drive sustainable growth and maximize profits for the company.
In addition to John Bosco Kim, Nexen said it was promoting 'next-generation leaders' who "demonstrated success" in key business areas such as sales, production, and research and development (R&D).
Through these executive appointments, Nexen said it aimed to "further solidify" its competitiveness, and respond quickly to the changing market environment.
The company said that despite weak sales in North America and a reorganization of distribution channels that reduced Nexen's average selling price, revenue remained stable based on original equipment and replacement sales in the European market.
Nexen aims to achieve revenue of $2.2 billion in 2025, and with the expansion of its plant in Zatek, Czech Republic and increased productivity, the company's total production capacity is expected to reach 50 million units by the end of this fiscal year.
The company also said it expects unfavorable business conditions to persist through 2025, including uncertainty over U.S. monetary policy and global trade tensions.
Nexen said higher raw material costs in 2024 were mainly due to a sharp increase in rubber prices, but this could be offset by slower growth in China's tire industry due to possible import restrictions on Chinese cars by the United States or Europe.
DLFTECH is a professional equipment marketing & service company built by a senior R&D and marketing team in the tire & conveyor belt equipment industry. Benefiting from the rapid follow up of the international rubber industry's process re-engineering and the demand for industrial intelligence, DLFTECH, the best of the best, has rapidly developed into a new star in the international rubber machinery industry.
If any tire or conveyor belt industry customers need such as OTR bead winding line, green tire inner & outer surface painting line, tire trimming machine etc., please feel free to contact info@delphygroup.com.
