Hankook Tire Announces Earnings Surprise in Q3
Boasts global operating profit rate of 19.1%
- Hankook Tire America Corp. recorded 16% YoY growth for U.S. sales
- Hankook Tire recorded a global operating profit rate of 19.1%
- Q3 global consolidated sales of KRW 1.44 trillion, with consolidated operating profits of KRW 275 billion with a 26.4%, 536.4% YoY respectively
- Ultra-high performance tires continue to increase in popularity with sales increase of 18.2% YoY globally
- Global performance proves Hankook Tire’s high-quality products and services
WAYNE, N.J., October 21, 2009 - Hankook Tire, the seventh-largest and one of the fastest growing tire companies in the world, announced their 2009 Q3 earnings results today, boasting an increase in sales of 26.4% YoY at KRW 1.44 trillion along with an astounding increase in operating profits of 536.4% YoY at KRW 275 billion. Hankook also attained a global operating profit rate of 19.1%.
Mr. Seung Hwa Suh, President & CEO, Hankook Tire, said, “Despite the economic climate, Hankook Tire has continued to stand out with its record high performance. Hankook Tire’s continuous efforts to enhance the quality of its products and services have supported us in winning the trust of consumers.”
Mr. Suh continued, “The tire industry is extremely competitive, it is essential that we continue investing to ensure sustainable growth. Hankook Tire remains positive about growth prospects for the future, as we continue to increase brand preference and devote ourselves to providing consumers with value-added high-quality products and services.”
U.S. replacement sales in the third quarter jumped 18% over the second quarter and was 21% ahead of the same period for 2008. The most significant boost in sales has come in the ultra-high performance segment.
“The majority of our growth this year in the United States has come from our replacement business,” said Greg Pae, President, Hankook Tire America Corp. “Replacement sales have shown significant increases over the last three quarters, illustrating the trend that consumers are focusing on high value products.”
Hankook Tire’s products and services have continued to rise in fame as they have been able to hold onto their number one spot in China, achieving an operating profit rate of 17.2%. In addition, Hankook Tire’s Hungary operations reached total sales of HUF 13.2 billion, a 67% YoY sales increase. Also, with Hankook Tire’s market diversification strategies in effect, it saw an increase in sales from emerging markets including the Commonwealth Independent States (CIS) and the Middle East.
In addition, as the reputation of Hankook Tire’s premium ultra-high performance (UHP) tires continue to grow; sales for UHP tires globally have increased 18.2% YoY. In particular, Korea operations saw figures at 92.8% YoY (KRW 23.4 billion) together with European nations at 32.9% YoY (KRW 40.1 billion).
Hankook Tire’s Korea operations’ Q3 non-consolidated revenue was at KRW 762.1 billion with a 14.1% YoY increase. Its operating profits were at KRW 155.9 billion ($909 million USD) with a 20.5% operating profit rate, resulting in a 189.5% YoY increase. Hankook Tire’s strong market share in Korea, which exceeds 50%, helped to increase its sales revenue by 33% YoY. North America and Europe boasted sales increases of 26.7% and 10.2% YoY, respectively.
Hankook Tire will continue to dedicate itself to maintain its investment in technology, brand reputation, and on-going support of consumer needs in order to become a ‘Leading Global Tire Company.’
About Hankook Tire America Corp.
Headquartered in Wayne, N.J., Hankook Tire America Corp. is a technology-focused, market-driven company that markets and distributes a complete line of high performance and ultra-high performance passenger tires, light truck, SUV tires, as well as medium truck and bus tires to more than 400 independent dealers through 3000+ retail sales locations in the United States and Canada.
For more information, please visit the Hankook website at www.hankooktireusa.com
[Unit: Billion Won]
|2009 Consolidated Revenue (KRW)
|Director of Brand Communication
||Assistant Account Executive
|Hankook Tire America Corp
|Phone: 973-633-9000 x 531