Hankook reports 11 percent growth with Q2 results

Seoul, South Korea - Hankook Tire Co. Ltd. reported double-digit increases in second-quarter and first-half sales while operating earnings lagged somewhat on higher sales, general and administrative expenses.

for the second quarter, Hankook's sales rose 11.4 percent to KRW 872 000 million (€688 million) as operating profits climbed 9.9 percent to €63.9 million.

Hankook´s sales grew in nearly all areas, including 23 percent in China, 13 percent in North America and 11 percent in Europe, where the company in June brought on stream a plant in Hungary.

Operating expenses were up 23.4 percent during the period, reflecting continued investment in the Hungarian plant, Hankook said. In addition, the cost of goods sold rose 9.8 percent, reflecting higher raw materials and labour costs.

"Our increased profitability is benefiting from a strategic focus on driving retail sales with more intensive marketing activities," said Hyun Bum Cho, chief strategy and financial officer, in a prepared statement.

He added that Hankook remains on track to meet its targets this year. "Our expanding global presence, especially in China and Europe, provides us with a strong base for expanding both sales and the reputation of the brand.

From Rubber & Plastics News (A Crain publication)