Hankook is reporting continued strong sales growth for this year’s first quarter, citing a 17.1 percent increase amounting to a worldwide sales figure of KRW 1.71 trillion (South Korean funds).
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Despite challenging global economic market conditions and eroded profitability due to an increase in the price of raw materials, profits reached KRW 235.3 billion for the quarter, a 71.1 percent increase, according to the company.
“Hankook’s commitment to increasing brand awareness as a premium tire manufacturer is clearly paying off,” says Soo Il Lee, president of Hankook Tire America Corp.
“Our impressive sales growth, especially in the United States, is further evidence that our combination of exceptional product quality, enhanced marketing efforts and growing original equipment fitments are being noticed by consumers,” he notes.
The company’s overall progress was driven by accelerated sales growth in North America, Europe and various emerging economies.
In North America and Europe, which make up 19.8 percent and 26.7 percent of the firm’s total global sales respectively, the growth occurred at a rate of 31 percent and 37 percent in each region, marking the highest sales figures since Hankook’s entry into these markets.
Sales in emerging markets, including South America and Southeast Asia, increased 32.8 percent.
North America and Europe led all the regions in sales growth for ultra-high performance tires, with respective rates of 33.9 percent and 45.2 percent.
In addition, the company has been steadily expanding its original equipment fitments with premium automakers such as BMW, including OE contracts for the 3-Series, 1-Series and Mini.
“Despite continued global economic downturn, we have been able to set global sales growth and operating profit based on consistent tire quality improvement as well as brand equity enhancement.” reports Seung Hwa Suh, vice chairman and CEO.
Building on this growth momentum, we will continue to strengthen our brand value and satisfy our customers as a leading global tire manufacturer through intensive marketing and communication activities,” Suh says.
For more information, visit www.hankooktireusa.com.
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