Sales up 27.5%, profits down 2.4% for Hankook
Hankook Tire Co. posted recurring profit of 89.8 billion won on sales of 1.11 trillion won for its second quarter ended June 30, 2008. That compares to income of 92 billion won on sales of 872 billion won for the same period last year.
Based on the currency rate provided by Hankook, the company recorded revenue of $88 million on sales of $1.1 billion for 2Q 2008. It's income-to-sales ratio was 8%.
The 27.5% increase in sales was paced by 67% growth in ultra-high performance tire sales.
Second-quarter operating profit, which totaled 79 billion yen ($77.4 million), was down 2.4%. Recurring profit also was down 2.4%.
"The tire industry continues to be fiercely competitive, and rising oil prices are also affecting consumers' purchasing intentions and decisions throughout the world," says CEO Seung Hwa Suh.
According to Hankook, its year-on-year sales remain strong "throughout key regions and within key business units, and were not affected by price increases made in the second quarter."