Hankook increases operating profit, sales

On the back of an expanding original equipment portfolio and higher ultra-high performance tyre sales Hankook Tire has reported increased operating profits and sales in its third quarter, reversing a year-long downward trend. The manufacturer has global sales revenues of 1,250 million euros (KRW 1.72 trillion), with operating profit of 208 million euros (KRW 276 billion). The manufacturer said that it had “reinforced its brand equity as a global premium tyre company” with a 3.3 per cent increase in sales and a 9.9 per cent growth in operating profit on the previous quarter. Year-on-year, sales remain down for the third quarter in a row, with 2013’s third quarter delivering (KRW1.80 trillion), though operating profit was higher in Q2, at 15.1 per cent, compared to 13.5 per cent in Q2 2013.

Hankook states that its global business is continuing its growth based on technological leadership and superior quality performance. In the past three quarters of 2014, the accumulated sales of ultra-high performance (UHP) tyres accounted for approximately 31 per cent of the company’s gross sales revenue. This is comparatively higher than the previous sales portion of UHP tyres for the same period in 2013, which marked 28.4 per cent in total.

The manufacturer’s growth in mature markets backs up its brand and product performance claims. Hankook accelerated sales growth in Europe and North America respectively at 15.4 and 10.3 per cent compared to the second quarter. Similarly, a growing global OE portfolio is a further indicator that Hankook is solidifying its position as a global top-tier tyre brand. Exemplifying this technological step forward, the company recently confirmed a supply agreement for its runflat tyres with German premium car manufacturers.

Hankook has also continued to invest in R&D and production capability, with completion dates for a new R&D centre in Korea, the “Hankook Technodome”, and its new US Plant in Tennessee in 2016.