Hankook posts nearly $1 billion in 2Q sales

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Hankook posts nearly $1 billion in 2Q sales

Hankook Tire Co. posted sales of 1.25 trillion won for its second quarter ended June 30, 2009. Sales were up 13.1% compared to the same period in 2008.

Hankook's 2Q 2009 operating profits came to 145 billion won, up 83.3% versus 2Q 2008.

Based on the June 30, 2009, exchange rate, Hankook recorded sales of $987 million in the second quarter, with $113.8 million in operating profit.

The Hankook Tire China and Hungary operation had record-high growth in the second quarter; in particular, the China operation recorded a 34.8% sales increase compared to 1Q 2009 "due to an increase in consumer demands and OE supplies, in line with the growing Chinese automotive industry," according to the company.

Sales from Hankook Tire’s profitable operation in Korea were up 63% year to year. Sale of its ultra-high performance tires alone totaled 21.3 billion won ($16.7 million) in the second quarter.

“With effective management of cost expenditures and marketing activities, which maximized return on investment, Hankook Tire saw marked growth in 1H09, despite the current economic climate," says CEO Seung Hwa Suh.

“The tire industry is extremely competitive, and as such, it is essential that we balance investments to ensure sustainable growth. Our product quality has been proven by leading European magazine test results and our brand awareness has increased particularly in Europe as we have invested in diverse marketing activities, such as global advertisement campaigns and sports marketing activities.

"Hankook Tire remains positive about further growth prospects for 2H09," he adds. The company is aggressively targeting global sales of approximately 4.33 trillion won for 2009.

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