Nexen Tire’s weak product mix widens profit gap with Hankook, Kumho

Nexen Tire’s weaker product mix is widening its profitability gap with Hankook Tire and Kumho Tire, as the company lags behind its rivals in the shift toward higher-margin, high-inch tires, according to data and industry officials, Monday. Nexen Tire was the only one of Korea’s three major tiremakers to report a decline in operating profit in the April-June period from a year earlier. Hankook Tire’s operating profit jumped 58 percent, while Kumho Tire posted a 24 percent increase. Industry officials said differences in product mix are emerging as one of the main reasons behind the widening gap. The shift toward…