South Korea’s second-largest tire maker Kumho Tire Co. reported poorer-than-expected results for the third quarter with its operating loss stretching to the seventh consecutive quarter amid normalization efforts under new ownership.

Kumho Tire in a regulatory filing on Wednesday said it recorded an operating loss of 38 billion won ($33.6 million) on a consolidated basis in the third quarter ended September, more than doubled from the same period last year and tripled from the previous quarter.

Its sales also shriveled 16.0 percent on year to 634.7 billion won.

The results also came below the market expectation for a turnaround in the third quarter. The market consensus compiled by Seoul-based market data provider FnGuide was 6 billion won in operating profit and 759.0 billion won for sales in the third quarter.

On Thursday, Kumho Tire shares lost 3.29 percent and ended at 4,990 won.

The company attributed its poor performance to the slowdown in the local auto which came harder on the company grappling with normalization efforts under the new ownership of Doublestar Tyre, said a Kumho Tire officer. Earlier this year, Qingdao-based Doublestar Tyre purchased a controlling 45 percent stake in its larger Korean rival for 646.3 billion won.

Price adjustment in Europe, re-imposed U.S. sanctions on Iran, and currency weakness in emerging markets added to its woes, said the company official.

By Moon Ji-woong and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]