Hankook U.S. OE Sales Skyrocket in Second Quarter
Market share continues to increase with overall sales up 26%
WAYNE, N.J. July 21, 2010 - Hankook Tire America Corp. (www.hankooktireusa.com) posted a sales jump for the second quarter of 2010 - a record 63 percent increase in OE sales and a 26 percent increase in overall sales YoY. Replacement tire sales also were up versus the same period last year with a 21 percent increase.
Increases in new vehicle sales and replacement products industry-wide contributed to these jumps, but do not alone explain the achievement; Hankook continues to buck the trend and gain market share. In replacement tire sales, Hankook has seen increased sales in all premium product categories, including UHP where the Ventus V12 evo continues to receive positive reviews from the media.
"We are incredibly pleased with these results," said Soo Il Lee, President of Hankook Tire America Corp. "These sales increases are due in part to an increased awareness for our brand in the U.S. from consumers and OE manufactures alike. We fully expect this momentum to continue during the second half of the year."
For 2010, Hankook Tire America expanded its North American OE portfolio with additions from Ford, Volkswagen, Hyundai and Kia. The tire maker now supplies its Optimo H426 for the 2011 Ford Fiesta, for the 2010 Kia Soul and Forte models, and also has expanded its supply of products to the Hyundai Sonata and the Ford Taurus in the recent months.
Globally, Hankook announced that its second quarter consolidated sales marked $1.2 billion USD, recording a 13.0 percent YoY increase. The company's second quarter operating profit jumped 22.7 percent YoY at $151.8 million USD.
According to Seung Hwa Suh, Vice Chairman and CEO of Hankook Tire, the record-breaking figures were driven by excellent business performance in the emerging markets such as the CIS region and Latin America, and backed by stable growth in China, Europe and North America, despite the rising raw material prices.
During the first six months of 2010, Hankook Tire's global operating profit posted at $250.3 million USD on a consolidated basis, showing a significant 116.5 percent jump in comparison to the previous year. Sales in the first half also rose by 15.2 percent from 2009 at $1.8 billion USD. Operating profit-to-sales ratio marked 14.2 percent.
Through sales increases in high price products - facilitated by customer trust and OE partnership expansion with leading automobile manufacturers in the first half of 2010 - Hankook Tire is optimistic it will achieve this year's sales target of more than $3.2 billion USD.
"Hankook Tire continues to have robust growth in the second quarter," said Suh. "With a positive outlook, we look forward to building stronger momentum during the second half through our ongoing focus on enhancing Hankook's brand value, increasing customer satisfaction, and expanding its OE tire supply to premium automakers."
Hankook is often referred to as the fastest growing and most profitable tire maker in the world - a claim that continues to be proven with its recent success.
About Hankook Tire Co., Ltd
Hankook Tire (CEO: Seung Hwa Suh) is the seventh largest and one of the fastest growing tire manufacturers in the world. It produces innovative, superior quality, and high performance radial tires for passenger cars, 4x4, SUVs, light trucks, campers, trucks, buses and for automobile motorsport. It invests approximately five percent of revenue in research and development and develops cutting-edge technologies through its five global R&D Centers meeting regional customer demands and enhancing customer satisfaction. Selling in 185 countries around the world, the company has more than 14,000 employees. Approximately 70 percent of revenue comes from growing overseas sales.
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.comMedia Contacts: