Hankook Sales Reach $1 Billion in Q1 2008

Hankook has reported year on year sales growth of 18.4 per cent during the first quarter of 2008, delivering the company its first-ever quarterly sales exceeding US$1 billion. The company attained sales of KRW997.3 billion ($1.041 billion). Sales figures for the three-month period included an impressive upsurge in worldwide UHP sector sales of more than 40 per cent and sales to OE manufacturers growing by 15.7 per cent.

Sales to Europe grew by 25.5 per cent year-on-year, boosted by a massive 183 increase in year-on-year sales to the Russian market. Sales to North America also recorded an 18.1 per cent year-on-year increase. In addition, sales to Latin America, Asia-Pacific, Africa and the Middle East increased year-on-year by 22.5 per cent.

Mr. Seung Hwa Suh, Global CEO of Hankook Tire, said, “our long-term and consistent investments continue to strengthen our technology, and the surge in sales for our high-end products reflects our growing reputation for providing high-quality, high-performance tyres. The company is in a strong position to build on this reputation, and we should continue to highlight the quality and technology behind our tyres to sustain success in emerging markets, as well as continue to challenge in other more established markets.”

Rising supply costs continue to provide a challenging operating environment for all tyre manufacturers. Hankook Tire’s cost of sales, including investments throughout its production facilities to increase production capacity to 74 million tyres by the end of 2008, increased by 21.9 per cent to KRW 739.6 billion ($737.1 million).

“The tyre industry is fiercely competitive and it is critical that we continue to manage costs effectively, while balancing investment to ensure sustained future growth,” continued Suh. “We continue to take a long term view. Demand for our quality products continues to outstrip supply and we are continuing to increase production in all countries where we are manufacturing.”