Hankook records double-digit global growth in Q1
Hankook Tire has reported continued sales growth during the first quarter of 2012. Growth was experienced in North American and European markets, and the company said demand for its ultra high performance tyres had rapidly increased during the first three months of the year. Seung-Hwa Suh, vice chairman & global CEO of Hankook Tire said: “Despite continued global economic downturn, we have been able to set global sales growth and operating profit based on consistent tyre quality improvement as well as brand equity enhancement.
“Building on this growth momentum, we will continue to strengthen our brand value and satisfy our customers as a leading global tyre manufacturer through intensive marketing and communication activities,” he added. Hankook’s global consolidated sales were 1.152 billion euro (KRW 1.71 trillion), representing a 17.1 per cent YoY increase. Its operating profit for the quarter was 158.6 million euro (KRW 235.3 billion), a 21.5 per cent increase.
In Europe and North America, which make up 26.7 and 19.8 per cent of its total global sales respectively, sales growth occurred at a rate of 37 and 31 per cent, marking the highest sales figures since its entry to these markets. Sales in emerging markets including South America and Southeast Asia also jumped by 32.8 per cent, reflecting Hankook Tire’s fast growing market presence.
The company said its enhanced brand value as a premium tyre manufacturer played a crucial role in achieving healthy sustainable growth, Hankook said, especially in terms of its performance in the premium tyre sector. This was reflected in the growth in UHP (Ultra-High Performance) tyres as well as OE (original equipment) tyres.
Europe and North America, the home of many premium automakers, led the UHP tyre sales growth among all regions at a rate of 45.2 and 33.9 per cent respectively. In the emerging economies, demand for UHP tyres also continued its hot streak in line with rapidly growing automotive market. In addition, Hankook has been steadily expanding its OE portfolio by supplying tyres to premium automakers such as the brand new BMW 3-Series, following on from the MINI and the new 1-Series.