Hankook Tire, the seventh largest and one of the fastest growing tire companies in the world, today announced its financial results for the third quarter of 2012 with global sales revenue topping KRW 1.79 trillion, continuing to meet its upward momentum with a 5.8% YoY increase. Operating profit for the quarter also saw a 21.7% YoY increase to KRW 219.6 billion.
The results indicate Hankook Tire’s business performance is reaching towards the annual target set at the start of 2012, maintaining an optimistic outlook for the rest of the year.
Despite the Euro-zone financial crisis accompanied by stagnant consumption in the global economy, Hankook Tire was able to maintain its growth momentum during the third quarter due to the surging demand for the company’s ultra-high performance (UHP) tires. Sales in this segment during this period accounted for 25.4% of the entire global sales, and its sales figure has increased at 28.7% YoY from the same period last year. Especially, the UHP revenues soared 68.9% YoY in North America, 50% YoY in China, and also 10.9% YoY in Europe.
Along with the healthy demand for the UHP tires, new original equipment (OE) fitment agreements in North America and China have contributed to its business growth. Hankook Tire recently announced that its products will be factory installed in the premium sedans, Ford Lincoln and Chrysler Dodge, adding to its mounting list of OE fitment contracts with global automakers. Hankook Tire is increasingly becoming a recognized brand in the premium OE fitment sector, having demonstrated superior quality and performance through exclusive tire sponsorships for major motorsport championships in Europe such as the world’s renowned DTM (Deutsche Tourenwagen Masters).
Other driving forces behind the growth can be credited to the successful expansion of Hankook Tire’s manufacturing facilities in Hungary. Performance from the emerging markets including Russia and the CIS also contributed, which saw a spike in revenues through the expansion of distribution channels.
“Increasing demand in our UHP tires added with our strategic expansion in key emerging markets were key contributors to our growth despite the global economy experiencing persistent stagnation and the Euro-zone crisis,” said Mr. Seung Hwa Suh, the Vice Chairman and the Global CEO at Hankook Tire Co., Ltd. He also said, “Hankook Tire will continue investments to increase presence in key strategic markets and deliver quality products through high class R&D.”