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Hankook’s global sales fall in 2Q

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Hankook Tire Co. Ltd. reported global consolidated sales of 1.62 trillion won for its second quarter of 2015. That compares to sales of 1.66 trillion won for the same period last year.

Based on the exchange rate, sales in the second quarter totaled $1.47 billion, according to the company.

Operating income totaled 201.1 billion won, down 20% from the same period a year earlier. The company did not release net income.

The company says several factors contributed to the drop in global sales revenue and operating income in the second quarter versus the year-ago period. These are:

* dropping prices caused by intensifying competition in the global tire market

* slow market growth in China and Korea

* fluctuations in exchange rates

However, sales volumes for developed markets in Europe and North America increased 12% to 14% compared to the second quarter of 2014.

Hankook expects the growth to continue for some time and says it will lead to further sales expansion for Hankook in North America.

The company also reported a 3.5% increase in Ultra High Performance Tire (UHPT) segment sales over the previous year.

UHPT accounted for approximately 34% of the company’s total sales in the passenger car market during the second quarter and led the sustainable sales growth.

Hankook says it will work to further improve the company’s position in the premium tire market, particularly in Europe and North America.

Hankook will also continue to accelerate its business growth as a global top tier tire company by expanding its supply for larger tire lines, including UHPT and truck and bus radials.

For more information about Hankook and its products, visit www.hankooktire.com.

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