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Hankook’s sales and profits drop in 1Q

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Hankook Tire Co. Ltd. reported consolidated sales of 1.48 trillion won for its first quarter of 2015. That compares to sales of 1.67 trillion won for the same period last year.

Based on the exchange rate, sales in the first quarter totaled $1.3 billion, according to the company.

Operating income totaled $203.2 billion won, down nearly 22% from a year earlier. The company did not release net income.

The company says several factors contributed to the dip in its global sales revenue and overall operating profit. These are:

* intensifying competition caused by the global economic recession;

* slow economic growth in China; and

* fluctuations in exchange rates stemming from the low Euro.

Hankook says it has seen consistent growth in revenue from the ultra high performance (UHP) tire segment. It accounts for approximately 34% of the company’s entire financial profit for the first quarter.

Specifically, sales revenue from Europe and North America has seen robust growth over the previous quarter in large part due to the increase in the sales of UHP tire and OE supply agreements in those developed markets.

The company says it will differentiate its products from the competition by diversifying the larger tire line-ups and further enhancing its position in the premium tire market. Hankook will also continue to accelerate its business growth as a global top tier-tire company by supplying OE tires to more major high-end automobile brands in Europe.

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

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