Slight dip for Hankook in Q1 2014

Revenue and operating profit at Hankook Tire was marginally lower year-on-year in the first quarter of 2014, the company reported on 30 April. Global sales revenue amounted to KRW 1.675 trillion (£958.9 million) between 1 January and 31 March, 0.3 per cent lower than the revenue achieved in the first quarter of 2013. Operating profit in Q1 2014 was KRW 260.1 billion (£148.9 million), 0.7 per cent less than a year earlier. Operating profit to sales ratio was 15.5 per cent.

Hankook Tire says its first quarter financial performance was largely driven by brisk sales in the ultra-high performance tyre segment across the global market. Quarterly global sales in UHP tyres showed a 7.6 per cent year-on-year increase, and this accounted for approximately 29.1 per cent of the company’s consolidated quarterly sales. In particular, China led all markets with UHP tyre sales to finish, with 18.2 per cent increase from a year earlier. The Middle East and other Asia-Pacific regions also enjoyed a drastic growth in UHP tyre sales, at a rate of 14.4 per cent year-on-year. The mature European and North American markets saw moderate increases in UHP sales, with 4.4 per cent and 3.6 per cent growth respectively from the same quarter last year.

“Despite challenges arising from changing business environment, our widely recognised tyre technology with advanced R&D capability has firmly solidified the foundation for growth, enabling robust financial results for the first quarter in 2014,” commented Hankook Tire vice-chairman and CEO Seung Hwa Suh. “With our technological leadership along with strategic investments in place, Hankook Tire will continue our endeavour to strengthen our brand value as a premium tyre company in the global automotive market.”