Sales and profits on the rise for Hankook and its dealers

Jan. 1, 2020
Hankook is reporting a record 63 percent increase in original equipment tire sales and an overall sales boost of 26 percent over the past four months. Replacement tire sales also were up versus last year?s second quarter with a 21 percent rise.

Hankook is reporting a record 63 percent increase in original equipment tire sales and an overall sales boost of 26 percent over the past four months. Replacement tire sales also were up versus last year’s second quarter with a 21 percent rise.

“We are incredibly pleased with these results,” says 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.”

In replacement tire sales, the company has seen heightened demand for its premium tires, including ultra-high performance, where the Ventus V12 evo continues to receive positive reviews.

For 2010, Hankook 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 it has also been providing tires for the Hyundai Sonata and Ford Taurus in recent months.

On a global level, the company’s second quarter consolidated sales marked $1.2 billion, recording a 13 percent increase over last year. The second quarter operating profit jumped 22.7 percent at $151.8 million.

According to Seung Hwa Suh, vice chairman and CEO, 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.”

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During the first six months of 2010, Hankook’s global operating profit posted at $250.3 million on a consolidated basis, showing a 116.5-percent jump in comparison to last year. Sales in the first half also rose by 15.2 percent from 2009 at $1.8 billion. Operating profit-to-sales ratio marked 14.2 percent.

Executives are optimistic that they will achieve this year’s sales target of more than $3.2 billion.

The company “continues to have robust growth in the second quarter,” says 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.”

For more information, visit www.hankooktireusa.com.

 

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