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Kumho Tire posts deepened net loss in 2017 on one-off costs

2018/02/09 19:09

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SEOUL, Feb. 9 (Yonhap) -- Kumho Tire Co., South Korea's second-largest tiremaker by sales, said Friday its net losses deepened last year on one-off provisions.

Net losses reached 88.56 billion won (US$81 million) for the whole of 2017, up significantly from 37.9 billion won a year earlier, the company said in a regulatory filing.

"The widened net loss came after the company put aside about 90 billion won in provisions in the fourth quarter for additional wages to be paid to employees whose position turned into regular workers from non-regular ones in accordance with a court ruling in December," a company spokesman said over the phone.

The company didn't clarify when the provisions will be paid in the form of wages to the workers.

Kumho Tire shifted to an operating loss of 156.9 billion won last year from an operating profit of 120.05 billion won in 2016. Sales fell 2.4 percent to 2.88 trillion won from 2.95 trillion won during the same period, it said.

Higher raw material prices and the won's strength against the dollar drove down operating profit, the company said.

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