Hankook Tire continues growth in the second quarter of 2013

Korean tire maker continues posting profits.


Hankook Tire announced financial results for its fiscal 2013 second quarter. The company posted global consolidated quarterly revenue of KRW 1.87 trillion, and its quarterly operating profit marked KRW 271.3 billion with a healthy operating profit to sales ratio of 14.5 percent. 

Despite fluctuating market demand in global tire industry during the quarter, Hankook Tire's global consolidated revenue continued to maintain its stability in sales growth. The company's quarterly revenue marked a YoY increase at 1.4 percent, 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, was even more impressive, posting a robust 11.3 percent YoY increase as the company continues to post operating profit figures at a healthy rate. 

Growing recognition of Hankook Tire's innovative technology and superior quality and performance is translating to the increase in sales in the premium tire segment, according to the company. 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 percent and 15 percent, respectively, from the previous quarter, a clear indicator of growing consumer trust in Hankook Tire's product quality and its advanced tire technology. 

For the second half of the year, Hankook Tire expects to sharpen its competitive edge through 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 Mr. Seung Hwa Suh, vice chairman & CEO of Hankook Tire. He adds, "On the basis of our continued capital investments to balance growth in both quantity and quality, we will continue to place our solid foot print in the global automotive industry and in our path to become a global top-5 global tire brand."

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