Premium tyre manufacturer Hankook has reported consolidated global sales of KRW 1.67 trillion and operating profit of KRW 260.1 billion in the first quarter of 2014, marking a healthy operating profit-to-sales ratio of 15.5 per cent.
Hankook Tire’s solid financial performance for the first quarter was largely driven by brisk sales in the ultra-high performance (UHP) tyre segment across the global market. The quarterly global sales in UHP tyres have shown a 7.6 per cent increase YoY, and this accounted for approximately 29.1 per cent of the company’s consolidated quarterly sales.
In particular, China led all markets with UHP tyre sales to finish with 18.2 per cent increase from a year earlier. Middle East and the Asia Pacific region also reported a big growth of 14.4 per cent. Moreover, in developed markets, Europe and North America saw moderate increases in UHP sales of 4.4 per cent and 3.6 per cent respectively from the same quarter last year.
Such a notable growth momentum in UHP evidently demonstrates Hankook Tire’s strong competitive advantage with innovative tyre technology as well as its enhanced brand equity as a premium tyre company in the global automotive industry.
Mr. Seung Hwa Suh, Vice Chairman & CEO of Hankook Tire, said: “Despite challenges arising from changing business environment, our widely recognized tyre technology with advanced R&D capability has firmly solidified the foundation for growth, enabling robust financial results for the first quarter in 2014. With our technological leadership along with strategic investments in place, Hankook Tire will continue our endeavor to strengthen our brand value as a premium tyre company in the global automotive market.”
Hankook appoints new COO for Europe & CIS
Premium tyre manufacturer Hankook has announced the appointment of Mr. Ho-Youl Pae, Senior Vice President and member of the Board of Hankook Tire Co. Ltd., as the Chief Operation Officer and Head of its European headquarters. Mr. Pae brings a wealth of international business and marketing expertise, with more than 28 years of experience, including more than seven years at top management positions since joining the company in 1986.
Mr. Pae takes over from Mr. Jin-Wook Choi who successfully expanded the company’s European state-of-the-art tyre plant in Hungary in the last five years. Mr. Choi left his current position at the end of 2013, heading towards a new consultancy/advisory role within the premium tyre manufacturer’s global headquarters from 2014.
Mr. Pae observed: “Our products performance and quality already fulfils even the highest demands, proven by various original equipment fitments from globally leading premium car manufacturers like BMW and Mercedes-Benz. And, of course, we will continue to focus our efforts on informing consumers about Hankook’s innovative, technologically advanced and environmental friendly tyres engineered and made in Europe for European drivers, thus further increasing awareness and image of the Hankook brand on the European continent”.