Mature markets a bastion of sales strength for Hankook Tire in challenging Q2 2015
Hankook Tire says increasing global competition, slow market growth in China and Korea and exchange rate fluctuations contributed to a year-on-year decline in operating profit in the second quarter of 2015. While sales revenue was only slightly down on a year earlier, falling 2.5 per cent to KRW 1.62 trillion (£886.4 million), operating profit dropped 20.0 per cent year-on-year in the April to June reporting period to KRW 201.1 billion (£110.0 million). Net profit figures were not reported.
Europe and North America both swam against the current in the second quarter, with sales volumes in these regions increasing 12 to 14 per cent compared with the second quarter of 2014. Hankook Tire says it expects this growth to continue for some time, and believes the trend will particularly lead to “further sales expansion for Hankook Tire in North America.” The company is especially keen to further improve its position within both regions’ premium tyre markets, and says it will work towards this goal.
Sales within the UHP tyre segment rose 3.5 per cent year-on-year and now account for approximately 34 per cent of the company’s total passenger car tyre market sales. Hankook Tire says it will expand its UHP tyre lines, along with its truck and bus radial lines.