Hankook Q1 Operating Profit Surges 501%

Results for the first quarter of 2010, released April 22, show Hankook Tire’s sales to have increased 17.6 per cent year-on-year to 1.3 trillion won (£780.4 million) and operating profit to have jumped 501.2 per cent to 212.2 billion won (£124.1 million). The tyre maker’s operating profit to sales ratio was 15.9 per cent, up from 12.6 per cent in the fourth quarter of 2009.

“Last year, Hankook Tire has amazed its competitors with an unprecedented business achievement despite economic difficulties,” stated Hankook Tire vice chairman and CEO Seung Hwa Suh. “We are happy to unveil our quarterly results showing an incomparable year-over-year increase in operating profit that exceeds 500 per cent. With the amazing Q1 sales result, I believe that Hankook Tire will have a positive result throughout the year. We plan to maintain this growth momentum by providing our customers with high quality products and services.”

Hankook comments that its quarter earnings were helped by strong sales in all markets including Korea, China, and Europe; sales increased 25.6 per cent and 40.6 per cent for the company’s Korean and Chinese operations respectively. In addition, Hankook’s global original equipment business achieved a 90 per cent year-over-year growth, and in China OE growth of 113 per cent occurred thanks to the region’s expanding vehicle market.

Another key sales driver was UHP tyres, adds Hankook. This sector, it says, saw “robust growth”, with sales 81 per cent higher than in the first quarter of 2009, and sales figures in the CIS, Latin America, China and Korea more than doubled. Respective year-over-year increases of 51 per cent and 61 per cent were recorded in Europe and North America.

For the full year, Hankook has set a sales target in excess of five trillion won (£2.9 billion). The company says its focus during the year will be upon strengthening its brand value, increasing customer satisfaction based on superior quality and service, and expanding its OE tyre supply to premium automakers.