Hankook Sees Q2 Profits Surge

Hankook Tire reports its profits in Korea jumped 22.4 per cent in the second quarter of 2010 to KRW 822.3 billion (£443.1 million), a figure the Korean tyre maker claims to be its highest ever quarterly result. This quarter high water mark was achieved on the back of a 13.0 per cent year-on-year increase in global consolidated sales, to KRW1.4 trillion (£754.4 million) and a 22.7 per cent year-on-year growth in operating profit to KRW 177.7 billion (£95.7 million).

These strong figures, comments the tyre maker, were driven by “excellent business performance in the emerging markets such as the CIS region, Latin America, backed by stable growth in China, Europe and North America, despite the rising raw material prices.” In Hankook’s home market of Korea, record quarter profits were accompanied by A 59 per cent year-on-year surge in operating profit to KRW 104.4 billion (£56.2 million), resulting in a 12.7 per cent operating profit to sales ratio. Supported by “vibrant” automotive and tyre markets, Hankook Tire also recorded its highest ever quarter profits in China. Sales marked a 17.2 per cent year-on-year increase in the second quarter, as well as a 12.3 per cent quarter-on-quarter growth. The record profit hat trick was rounded out by the company’s Hungary plant following the highest ever quarter sales and a 963.9 per cent year-on- year increase in operating profit.

 According to the tyre maker, this continuous growth during the second quarter had its origin in particular in the sales demand from CIS and Latin America, regions where it says Hankook UHP tyres are gaining increased recognition. “Hankook Tire continued to have robust growth in the second quarter,” said 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 its OE tyre supply to premium automakers.”

 During the first half year of 2010, Hankook Tire’s global operating profit was posted at KRW389.9 billion (£210.1 million) 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 KRW2.8 trillion (£1.5 billion). Operating profit to sales ratio marked 14.2 per cent. Through an increase in sales for high price products, which Hankook comments was facilitated by customer trust as well as an expansion of OE partnerships with leading automobile manufacturers in the first half of 2010, Hankook Tire states it is optimistic about achieving this year’s sales target of more than KRW 5 trillion (£2.7 billion).