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Welcome to the Hankook Tire press room, where you can access the latest news on Hankook Tire and our industry.
Date05/11/2007 Hits27,457

CategoryCorporate

Hankook Tire First Quarter Results Show Strong European Growth and Increased Demand for its UHP Tire

Hankook Tire First Quarter Results Show Strong European Growth and Increased Demand for its UHP Tires
 
- Global sales increase by 14.6% despite price increase of 5.2%
- Ultra-high performance (UHP) tire sales grow by 21%, reflecting global appreciation of Hankook tire technology and brand
- European sales record 23% increase on the eve of the opening of €500 million European production facility
 
SEOUL, KOREA 8th MAY - Hankook Tire (www.hankooktire.com), one of the fastest growing tire manufacturers in the world*, today announced quarterly global results that show KRW842.4 billion (US$827.2 million) in the first quarter of 2007, a year-on-year increase of 14.6%.
 
The company saw significant sales growth of 21% in its ultra-high performance (UHP) tire business, recording US$68.4 million. With approximately 90% of UHP sales from overseas, the demand for more technologically advanced tires boosted regional sales, which saw an average increase of 14%. Sales to overseas OE manufacturers also increased by 48% to US$47.1 million. 
 
Chief Strategy and Financial Officer Hyun Bum Cho said, “Coupled with our robust product mix, the results clearly reflect Hankook Tire’s growing international reputation for providing innovative, high performance tires.  Recent deals, such as contracts to supply tires to premium automakers including Audi, will continue to build our OE business and our global brand equity.  Our continued sales growth, despite increases in our product price, clearly validates our long term strategic investments in technology and marketing activities throughout the world.”
 
European sales increased by 23% to US$137 million in spite of a 4.5% price increase and were boosted by a series of impressive industry tire reviews.  North America recorded a 2% year-on-year increase to US$104.1 million in the context of a 5.5% price increase, while Other Markets** increased sales by 6% to US$111.9 million with a 5.1% price increase.  Sales in China, where Hankook is the market leader and one out of every four tires is a Hankook, and Korea, where Hankook also has the biggest market share with approximately 45%, increased by 23% and 9%, respectively.
 
Consolidated operating profits fell by 7.6% as the company built up its production capacity and fostered further brand equity in overseas markets. Hankook continued to invest in China, where it has built up the country’s biggest distribution network and now supplies to over 30 major OE manufacturers.  The company is expanding its China production facilities which will raise capacity to 28 million by the end of 2009 and has begun rolling out its T-Station one-stop auto-after-service franchise to build further brand awareness in the increasingly competitive market.  Later this year, Hankook Tire will open its first €500 million European production facility in Hungary to meet the overwhelming demand from the region.
 
 
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Mr. Cho continued, “We are well positioned to meet all our targets this year and continued investment in R&D, production and marketing activities will ensure the long term success of the company and our brand.  Increasing our presence in China through initiatives such as the T-Station concept and the opening of our European production facility will lay the foundation for capitalizing on our strong market position and sales potential.”
 
 
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* According to Modern Tire Dealer (Jan. 2007), Hankook Tire’s 20% growth rate was the joint highest of all top eleven global tire manufactures
** Other Markets comprise sales from Latin America, Asia-Pacific, Africa and the Middle East.
 
2007 Consolidated Profit

(Unit : one hundred million KRW)

 

06.Q1

07. Q1

YoY%

Sales

7,351

8,424

14.6%

Operating Profit

832

769

-7.6%

Recurring Profit

788

624

-20.8%

 


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