Hankook profits nearly double on 13% sales increase in Q2

ERJ staff report (DS)

Seoul, Korea -- Hankook Tire said operating profit nearly doubled in the three months to 30 June 2009, on sales up by 13.1 percent compared to the same period a year ago. However, the figures show a substantial improvement on the poor first quarter, with sales up by over 10 percent and operating profits more than doubled.

The company recorded sales of KRW12.57 million million (euro 719 million) for the three months, up by 13 percent on the same period a year ago (KRW 11.1 million million) and by 10.3 percent on the previous quarter. Operating profit for the three months stood at KRW 1.448 million million, up by 83 percent on the figure of KRW790 000 million recorded in the same period a year ago and nearly four times the figure of KRW 353 billion recorded in the first quarter.

The company said Hankook Tire China and Hungary operation saw a triple-digit percentage increase in its operating profit figures to mark a turning point in the growth of the company. In particular, the China operation recorded a 34.8 percent sales increase on the previous quarter due to an increase in consumer demands and OE supplies, in line with the growing Chinese automotive industry. The Hungary operation showed a 44.6 percent sales increase compared to a year ago.

Mr. Seung Hwa Suh, Global CEO of Hankook Tire said, “With effective management of cost expenditures and marketing activities, which maximized return on investment, Hankook Tire saw marked growth in 1H09, despite the current economic climate. We will continue to highlight our commitment to technology, particularly for environmentally friendly tires, together with excellence for the development of high-quality products. We will continue to maintain stable growth in established markets, as well as expand on market shares in the emerging markets. We are particularly proud of growth in the Chinese and the European market, as we see that consumers in these markets show higher demands and preference towards our high value quality product.”

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Press release from Hankook