Hankook sees 22% rise in profit

ERJ staff report (LMH)

Seoul - Hankook says operating profit in the third quarter was up 21.7 percent at Euro 154.9 million, on sales of Euro 1.26 billion. Sales were up 5.8 percent year-on-year.

Hankook said that despite the Eurozone financial crisis accompanied by stagnant consumption in the global economy, it was able to maintain its growth momentum during the third quarter due to surging demand for the company's ultra-high performance (UHP) tyres.

Sales in this segment during this period accounted for 25.4 percent of the entire global sales.

The South Korean tyre maker said UHP revenues soared 68.9 percent in North America, 50 percent in China, and also 10.9 percent in Europe, compared to the third quarter 2011.

Hankook also attributed growth to new original equipment (OE) fitment agreements in North America and China.

“Increasing demand in our UHP tyres added with our continuous in strategically important emerging markets were key contributors to our growth despite the global economy experiencing persistent stagnation and the Eurozone crisis,” commented Seung Hwa Suh, CEO of Hankook Tire Co. Ltd.

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News release from Hankook