Hankook reports modest Q3 growth

During the third quarter of 2013, revenues at Hankook Tire edged up 0.8 per cent to KRW 1.80 trillion billion (£1.06 billion, €1.22 billion), while operating profit of KRW 244.2 billion (£143.3 million, €165.9 million) was 5.9 per cent higher than the same time last year yet 10.4 per cent lower than in the second quarter of 2013. Operating profit to sales ratio was 13.6 per cent, up 9.9 per cent year-on-year but down 10.0 per cent quarter-on-quarter.

Over the course of the third quarter, the company also announced a number of new original equipment deals, including agreements with Mercedes-Benz, BMW, Mini, Toyota, Nissan and Honda. The tyre maker reports that deals such as these have driven original equipment sales in Europe up 8.3 per cent year-on-year during the three months to 30 September, while China market original equipment sales rose 6.0 per cent year-on-year.

“Our expanding premium OE portfolio was the key attribute behind this quarter’s solid business performance, signalling our globally growing recognition as a premium tyre producer,” commented Hankook Tire vice-chairman and CEO Seung Hwa Suh. “With a further consolidated global production network with the newest Indonesia plant and the recently announced US plant, the continuous expansion of our European production as well as the new Central R&D Center in Korea under construction, Hankook Tire’s foresighted investment will continue and build a stronger springboard for growth, which will enable a greater leap towards becoming a leading global tyre company.”