Hankook Tire Continues to Experience Robust Growth in Second Quarter

Hankook Tire (www.hankooktire.com) announced that its second quarter global consolidated sales marked $1.2 billion CAD, recording a 13 per cent YoY increase. The company’s second quarter operating profit jumped 22.7 per cent YoY to $155 million CAD.

Following the earnings surprise in the first quarter, Hankook Tire continued to show positive growth in the second quarter of 2010. The record-breaking figures were driven by excellent business performance in the emerging markets such as the CIS region, Latin America, backed by stable growth in North America, China, and Europe, despite the rising raw material prices.   

In Canada Hankook has continued to perform well and is leveraging its new Western Distribution centre to continue to increase its share of the market.  Hankook Canada has also put continued to further increase their brand awareness amongst Canadians which is helping the brand recognition grow.

Profits generated in Korea recorded the highest ever quarterly results and increased 22.4 per cent YoY in the second quarter to $719 million CAD. Operating profit also showed a 59 per cent YoY surge of $91 million CAD resulting in a 12.7 per cent of operating profit to sales ratio. Supported by the country’s vibrant automobile and tire markets, Hankook Tire recorded the highest ever quarterly profits in China. Sales marked a 17.2 per cent YoY increase in the second quarter, as well as a 12.3 per cent QoQ growth. Profits by the Hungary plant, along with China and Korea, also marked the highest ever quarterly sales record with a 963.9 per cent YoY increase in operating profit.

Hankook Tire’s continuous growth during the second quarter particularly derived from the sales demand from CIS and Latin America thanks to the increasing recognition for Hankook’s UHP (Ultra High Performance) tires in these regions.

For the first half of 2010, Hankook Tire’s global operating profit is posted at $341 million CAD on a consolidated basis, showing a significant 116.5 per cent jump in comparison to the previous year. Sales in the first half also rose by 15.2 per cent from 2009 at 2.4 billion CAD. Operating profit to sales ratio marked 14.2per cent. Hankook is optimistic on achieving this year’s sales target of more than $4.4 billion CAD, because of its global focus on building the brand and creating trust with consumers.

“Hankook Tire continued to have robust growth in the second quarter,” Said Mr. Seung Hwa Suh, Vice Chairman & CEO of Hankook Tire.  “With a positive outlook, we look forward to building stronger momentum during the second half through our ongoing focus on enhancing Hankook’s brand value, increasing customer satisfaction, and expanding our OE tire supply to premium automakers.”