Hankook continues upward trajectory

Hankook’s results for the second quarter (April-June) of 2013 continue to show steady growth with operating profit up 11.3 per cent and sales up 1.4 per cent year on year. The company achieved a global sales revenue of KRW 1.87 trillion (1.276 billion euro) in the quarter, with operating profit marked at KRW 271.3 billion (185.2 million euro). The company stated that increased sales in the ultra-high performance tyre sector and premium brand equity helped it secure solid sales increases in its major markets.

Hankook achieved these results despite fluctuating market demand during the period, and the company vies its premium tyre segment sales as a particular highlight. According to the company’s statement, this shows a “growing recognition of Hankook Tire’s innovative technology, superior quality and performance”, backed up by impressive gains in the UHP segment, particularly in China and North America. UHP sales in these markets rose by 32 and 15 per cent respectively from the previous quarter, Hankook states, arguing that this is a clear indicator of the “growing consumer trust in its product quality and advanced technology.”

“We are pleased that our results for the second quarter of 2013 shows solidarity across all of the facets of Hankook Tire as it is a result of our foresight into the future to solidify our foundation for growth based on balanced global production portfolio and advanced R&D capabilities,” said Seung-Hwa Suh, vice chairman & CEO of Hankook Tire. “On the basis of our continued capital investments to balance growth in both quantity and quality, we will continue to increase our footprint in the global automotive industry as we continue on our path to become a top-five global tyre brand.”

Greater flexibility with new facilities

Projecting continued strength in the remainder of the year, Hankook stated its expectation that it would sharpen its competitive edge through its global supply network. It believes the newly constructed production facilities in Chongqing, China and Cikarang, Indonesia – both now operational – will help Hankook to increase the flexibility of its global supply. 

In addition, the company continues to emphasise the development of premium UHP tyres “with cutting-edge features”, as it continues investments in research and development.

• Analysts: Korean tyre companies outperform index
• Hankook’s Dynapro HP2 adds SUV to high performance range
• Hankook invests 313 million euros in Hungary factory expansion