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Hankook in 2Q ’13: Net sales up 1.4% YoY

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Hankook Tire Co. Ltd. has announced that in fiscal 2013 second quarter, the company posted global consolidated quarterly net sales of $1.7 billion (KRW 1.87 trillion), and its operating profit marked $241.8 million (KRW 271.3 billion) with a healthy operating profit to sales ratio of 14.5%.

Hankook says that despite fluctuating market demand in the global tire industry during the quarter, the company’s global consolidated revenue continued to maintain its stability in sales growth. The company’s quarterly net sales marked a YoY increase at 1.4%, nearly on a par with the figure from the second quarter of 2012.

Operating profit, a key attribute that measures the performance of the company’s core business, posted a robust 11.3% YoY increase as the company notes it continues to post operating profit figures at a healthy rate.

Growing recognition of Hankook Tire’s innovative technology and quality and performance is translating to the increase in sales in the premium tire segment.

The sales of Hankook Tire’s ultra-high performance (UHP) tires continues to show steep growth across markets, particularly in China and North America, where the company’s UHP tire sales rose by 32% and 15%, respectively, from the previous quarter.

For the second half of the year, Hankook Tire expects to sharpen its competitive edge through a flexible global supply network, particularly as the company’s newly constructed production facilities in Chongqing, China and Cikarang, Indonesia stabilizes its operation.

In addition, the company continues to facilitate its continued investments in research and development, placing keen emphasis in the development of premium UHP tires with cutting-edge features.

“We are pleased that our results for the second quarter of 2013 shows solidarity across all of the facets of Hankook Tire as it is a result of our foresight into the future to solidify our foundation for growth based on balanced global production portfolio and advanced R&D capabilities,” said Seung Hwa Suh, CEO and vice chairman of Hankook Tire.

“On the basis of our continued capital investments to balance growth in both quantity and quality, we will continue to place our solid footprint in the global automotive industry and in our path to become a global top-five global tire brand.”

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