Hankook earnings down despite higher sales

Seoul, Korea - Hankook Tire Co. Ltd. reported lower first quarter operating and recurring earnings despite 14.6-percent higher sales.

Hankook's sales growth came primarily in Europe and China, where the firm's revenues rose 23 percent. Sales in North America, by contrast, were up only 2 percent to $104.1 million on the strength of a recent 5-percent price increase.Operating income fell 7.6 percent to $85.1 million and recurring profit fell 20.8 percent to $66.4 million, Hankook said, while sales grew to $896.9 million.

Within the product mix, Hankook reported sales of ultra-high-performance tyres grew 21 percent during the period to $68.4 million, about 90 percent of which was generated overseas.

“Coupled with our robust product mix, the results clearly reflect Hankook Tire's growing international reputation for providing innovative, high-performance tyres,” said Hyun Bum Cho, chief strategy and financial officer, in a prepared statement.

“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,” Cho said.

From Tire Business (A Crain publication)