Sales of UHP Tires Boost Hankook’s 2Q Results

Aug. 22, 2016

Hankook Tire Co. Ltd. reported global consolidated sales of 1.72 trillion won for its second quarter of 2016, up 6.6% versus the year ago period when sales were 1.62 trillion won.

Based on the exchange rate, sales in the second quarter totaled $1.48 billion, according to the company.

Operating income was up 54.3% to 310.2 billion won ($266.7 billion), compared to the same period last year. The company did not release net income.

Hankook says its performance in 2Q 2016 is largely due to sales of ultra high performance tires (UHP), which has increased to account for 37.7% of overall sales. Compared to the same period of last year, UHP sales have increased 2.6%. The company says UHP sales continue to grow in the European and North American markets.

Hankook also expanded its global OE supply in the second quarter by signing multiple original equipment contracts with a number of high-end premium automakers, including BMW's new flagship 7 series and Macan, a high-end SUV by Porsche.

In the second half of 2016, Hankook plans to open Hankook Technodome, a global hub research and development center based in Korea. The company also says it aims to focus on further widening UHP and premium OE offerings as well as replacement tire offerings. In addition, Hankook plans to strengthen its global distribution channel strategy and expand contact points with global customers.

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