ERJ staff report (DS)
Seoul. Korea -- Hankook Tire has reported year-on-year sales growth of 18.4 percent across its business, but a massive 40 percent in its ultra-high performance (UHP) tyre business. This helped the company record first-quarter sales of KRW997 300 million, US$995 million, €639 million). The company said operating profit was up by 7.4% in the first quarter of 2008.
Sales from the UHP business accounted for US$96.6 million and sales to OE manufacturers also increased by 15.7% year-on-year. Sales to Europe grew by 25.5% year-on-year, boosted by significant growth of 183% year-on-year sales to the Russia market. Sales to North America also recorded an 18.1% year-on-year increase. In addition, sales to Other Markets** increased year-on-year by 22.5%.
The company noted, however, that "Rising supply costs continue to shape a challenging business environment for all tyre makers. Hankook Tire cost of sales, which include investments throughout its production facilities to increase production capacity to 74 million tyres by the end of 2008, increased by 21.9% to KRW 739.6 billion."
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Press release from Hankook