Hankook Tire Corp. announced the highest quarterly global sales on record for the first quarter of 2011 with turnover totaling 1.4 trillion South Korean won, a 16.3% year-on-year increase.
Hankook’s first quarter operating profit for 2011 amounted to 179 billion won. Operating profit to sales ratio was 12.4%, up from 6.9% in the fourth quarter of 2010.
Following the release of the figures on April 20, Hankook reports that the company saw “significant growth” in the developed markets, particularly Europe. Sales in Europe, the company’s biggest regional market, are reported to have jumped 20.9% on the back of improved productivity as well as a capacity increase in Hankook’s European plant in Hungary.
Sales in North America also climbed 29.1% from the first quarter last year.
Sales figures in the CIS region, Latin America, the Mideast and Asia Pacific regions showed steady growth too. Sales soared 38.4% and 21.8% from last year’s first quarter in Latin America and the Asia Pacific regions, respectively.
South Korea, China and Hungary operations achieved 18%, 19% and 59% increases (respectively) from quarter one 2010. Notably in China, where Hankook is purportedly the number one tire brand, the company saw 33.9% year-on-year growth in the replacement tire market, underlining that the brand is attracting more Chinese consumers.
In addition, Hankook’s sales in UHP tires continued to see robust growth with a 42.5% year-on-year increase.
Seung Hwa Suh, vice chairman and CEO of Hankook Tire, stated: “Hankook continues to see positive performance in the first quarter this year. We believe that Hankook’s competitive product quality has greatly contributed to our sustainable growth during a time when the global business environment was unstable…I expect this is just the start of a dynamic growth in 2011, that would be realized along with our global customers’ satisfaction.”
(Tyres & Accessores)
