Hankook Tire Co. Ltd. reports global sales of approximately $990.6 million in the third quarter of 2007. This represents a year-on-year increase of 8.1% and quarter-on-quarter growth of 5.4%.
The company had year-on-year sales increases of 23% and 11% across the first and second quarters of this year, respectively.
Chief Marketing Officer Hyun Shick Cho says, “Our long-term marketing, management, distribution and production initiatives in Europe, in particular, are beginning to return strong dividends for the company. (Hankook Tire’s 500 million euro production facility in Hungary, its first in Europe, started operations at the end of June 2007.)
Hankook Tire reports it continues to invest approximately 5% of its sales revenue in developing new technology. Sales of Hankook Tire’s ultra-high performance (UHP) tires increased by 5% year-on-year and 8% quarter-on-quarter.
Consolidated operating profits remained strong, increasing by 3.2% year-on-year to approximately $83.8 million despite a 10% increase in the cost of goods sold, the company reports. Sales increased by 12.8% year-on-year in China and 7.6% in Korea.
Cho says, “Our third quarter performance has exceeded analysts’ expectations again and is testament to the strong global management structures and internal efficiencies we have reinforced in recent months. We are effectively managing the increasing cost of raw materials and our pricing strategy is facilitated by a long-term strengthening of our brand’s reputation. We are in a good position to meet this year’s targets."
