Hankook Tire reports record sales in Q2 2011
Hankook Tire Co. Ltd. announced that its second quarter global consolidated sales were 1.58 trillion Korean Won (KRW), recording a 21% year-on-year (YoY) increase. The company’s second quarter operating profit recorded KRW 110.7 billion.
The company credits its 2011 sales records to positive events including Hankook’s 70th anniversary, new plant investments and sponsorship of the German racing series Deutsche Tourenwagen Meisterschaft (DTM). This was also driven by its diversification of markets as well as ongoing efforts to improve productivity and develop new products.
The ultra-high performance (UHP) tire sales once again played a key role along with Hankook’s increased recognition for high quality tires, proven by the optimal support for the DTM races, the recent tire supply to the BMW-group, and excellent results from European tire tests.
In Europe, Hankook sold 89.6% more UHP tires than last year’s second quarter, while it sold 43.6% more in North America and 52.5% more in the Asia Pacific regions. Overseas original equipment for UHP tires were up 90% from the same period last year.
Upgraded brand value helped achieve excellent business performance both in the emerging and developed markets. One of the emerging markets, Russia, had an increase with 96.6% sales growth from last year’s second quarter. Continuous growth was also achieved in Europe, North America and the Asia Pacific regions, marking 49.8%, 36.0%, and 43.7% YoY increases respectively.
“Hankook Tire continues to achieve a surge in sales in the second quarter, overcoming the various challenges in the current tire market,” said Seung Hwa Suh, Hankook’s vice chairman and CEO. “Such accomplishments were possible through the global customers’ trust in Hankook’s quality products fulfilled by ongoing R&D efforts.”