Hankook returns to profit on higher Q1 sales

ERJ staff report (DS)

Seoul, Korea -- Hankook Tire said its operating profit for the three months to 31 March 2009 fell by about half compared to a year ago, but it reported strong sales growth. The company reported sales up by 13.8 percent, at KRW 1135 000 million (euro 669 million), compared with KRW 997000 a year ago. Operating profit fell to KRW 35 300 million (euro 20.8 million) from KRW 74 000 million. Nevertheless, the company reversed the losses reported in the final quarter of 2008.

All the main western tyre makers saw their sales decline by around 10 percent or more in the first quarter. Only Apollo Tyre from India has so far reported higher sales in the quarter.

Hankook said it is seeing initial signs of a revival in the tyre market. The company said export demand from North America grew by 20 percent, while demand from Europe grew by 9 percent over the same period last year.

Hankook said it expects further growth in 2009 and is aiming for total sales in the 12 months to December 2009 of KRW 4.33 million million (trillion), compared with KRW4.07 trillion reported in 2008.