[EQUITIES]Daishin Securities forecasts increased Q3 profit for Nexen Tire

[THE INVESTOR]  Daishin Securities said on Sept. 30 that Nexen Tire ’s third-quarter operating profit would grow 7.3 percent on-year despite a rise in raw material prices.

The brokerage firm predicted Nexen Tire will post 473 billion won (US$427.84 million) in sales and 55 billion won in operating profit, up 0.5 percent and 7.3 percent on-year respectively, in the July-Sept. period.

“We had expected the price of raw materials to increase by 10 percent from the first quarter, resulting in a slowdown in profits in the third quarter. But the price didn’t increase significantly,” analyst Jeon Jae-chun of Daishin Securities said. 

“While the price of natural robber rose by 8 percent from the second quarter, price of synthetic rubber barely increased.”

By Ahn Sung-mi (sahn@heraldcorp.com)