Boost in Hankook Tire turnover, operating profit in Q1 2016

Hankook Tire has reported its first quarter 2016 financial results, and these show a 9.4 per cent year-on-year rise in consolidated sales; these amounted to KRW 1.6 trillion (£975.4 million) in the three months to 31 March 2016. Operating profit rose 23.6 per cent to KRW 251.1 billion (£150.3 million).

The company attributes its first quarter growth to “impressive performance in its core markets in Europe and North America,” and it also points to strong UHP tyre sales as another growth factor. The UHP segment accounted for approximately 33.7 per cent of Hankook Tire’s first quarter gross sales revenue, and sales of these products increased 15.6 per cent year-on-year in Europe and 38.7 per cent in North America.

Hankook Tire states an intention “further improve its position in the premium tyre market, particularly in Europe and North America.” In response to increased market demand for larger rim diameter fitments, the tyre maker plans an up to 50 per cent expansion of its 4,000 direct and indirect global distribution channels by 2017. The company also aims to further its original equipment activities with global premium automotive brands.