Hankook reports drop in 1Q sales and profit

Hankook Tire achieved a global sales revenue of KRW 1.48 trillion (1.19 billion euros) and an operating profit of KRW 203.2 billion (164 million euros) in the first quarter of 2015, both figures down on the previous year period.

According to the company, several factors such as “intensifying competition caused by the global economic recession and slow economic growth in China, as well as fluctuations in exchange rates stemming from the low euro, the currency for one of Hankook Tire’s major markets” contributed to the “slight dip”.

However, between January and March 2015, Hankook Tire reports that it saw consistent growth in revenue from the Ultra High Performance (UHP) tyre segment. The segment accounts for approximately 34 per cent of the company’s entire financial profit for the first quarter. Specifically, sales revenues from Europe and North America have reportedly seen robust growth over the previous quarter in large part due to the increase in the sales of UHP tyres and Original Equipment (OE) supply agreements in those developed markets.

Moving forward Hankook says it will differentiate its products from the competition by diversifying the larger tyre line-ups and further enhancing the company’s position in the premium tyre market. Company representatives also suggested the firm will increase “the supply of OE tyres to major high-end automobile brands in Europe”.

Hankook Tire Q1 2015 Global Consolidated Financial Result

Source: Hankook