Hankook Tire Co. Ltd. reported global consolidated sales of 1.63 trillion won for its first quarter of 2016, up 9.4% versus the year-ago period when sales were 1.48 trillion won.
Based on the exchange rate, sales in the first quarter totaled 1.35 billion according to the company.
Operating income was up 23.6% to $251.1 billion won compared to the same period of last year. The company did not release net income.
Despite fluctuations in global economy, Hankook says it strengthened its brand equity as a global premium tire company.
Hankook says its growth for the first quarter of 2016 is attributed to impressive performance in its core markets in Europe and North America, especially in the U.S. Increased sales volume and OE sales led 7.9 % and 8.4 % year-on-year growth in Europe and in U.S respectively.
Efforts to implement aggressive global downstream strategy as well as enhanced visibility with brand communication activities in the market have contributed to the first quarter results, according to the company.
The ultra high performance (UHP) segment reported a 6.9% increase in sales from the same quarter in 2015. The UHP segment accounted for approximately 33.7 % of the company’s gross sales revenue during the first quarter and led sustainable sales growth. In particular, Europe and North America saw 15.6% and 38.7% year-on-year increase in UHP sales.
Hankook says it will work to further improve its position in the premium tire market, particularly in Europe and North America. As market demand for high-inch has increased, Hankook plans to expand its 4,000 direct and indirect global distribution channels up to 50% by 2017.
Hankook will also continue to accelerate its business growth as a global top-tier tire company by expanding its supply for global premium automotive brands.
For more information about Hankook and its products, visit www.hankooktire.com.
