Hankook Tire Co. Ltd. posted net sales in the company’s 2012 third quarter of more than 1.79 trillion won, a 5.8% year-over-year increase. Operating profit for the quarter also saw a 21.7% year-over-year increase to 219.6 billion won.
Despite the euro-zone financial crisis accompanied by stagnant consumption in the global economy, Hankook Tire was able to maintain its growth momentum during the third quarter due to the surging demand for the company’s ultra-high performance tires, the company reported.
Sales in this segment during this period accounted for 25.4% of the entire global sales, and its sales figure has increased at 28.7% from the same period last year. Of note, the UHP revenues increased 68.9% year-over-year in North America, 50% in China, and 10.9% in Europe.
Along with the healthy demand for the UHP tires, new original equipment fitment agreements in North America and China have contributed to its business growth, Hankook said.
Hankook recently announced that its products will be factory installed on Ford Lincoln and Chrysler Dodge premium sedan models, adding to its mounting list of OE fitment contracts with global automakers.
“Hankook Tire is increasingly becoming a recognized brand in the premium OE fitment sector, having demonstrated superior quality and performance through exclusive tire sponsorships for major motorsport championships in Europe such as the world’s renowned DTM (Deutsche Tourenwagen Masters),” the company said.
Other driving forces behind the growth can be credited to the successful expansion of Hankook Tire’s manufacturing facilities in Hungary. Performance from the emerging markets including Russia and the CIS also contributed, which saw a spike in revenues through the expansion of distribution channels.
“Increasing demand in our UHP tires added with our strategic expansion in key emerging markets were key contributors to our growth despite the global economy experiencing persistent stagnation and the Euro-zone crisis,” said Seung Hwa Suh, Hankook’s vice chairman and global CEO. “Hankook Tire will continue investments to increase presence in key strategic markets and deliver quality products through high class R&D.”
The results indicate Hankook Tire’s business performance is reaching toward the annual target set at the start of 2012, maintaining an optimistic outlook for the rest of the year, the company said.
To read about how Hankook fared in its secnond quarter, click here.
