Hankook Q2 operating profit surges
Hankook Tire’s operating profit surged 45% to $266.7 million in the second quarter of FY2016, though sales remained flat in the quarter.
The company’s operating profit for Q2Fy2015 had stood at $183.1 million. Sales for the quarter reached to $1,484.9 million as against $1,475.6 million in the corresponding period.
The company continued to strengthen its brand equity with increased sales revenues of 6.6% compared with the previous year quarter.
Compared with the same quarter last year, the Ultra High Performance tyre (UHP) segment has significantly increased by 2.6 % and contributed to Hankook Tire’s growth in the second quarter of 2016. The segment accounts for 37.7% of overall sales and continues to grow in automobile core markets, Europe and North America.
Due to its technological excellence, Hankook secured multiple Original Equipment tyre (OE) contracts with several premium automakers for e.g. the new BMW 7-Series and the Porsche Macan. Hankook Tire further improves its visibility as a premium brand by recently signing a global partnership with UEFA Champions League winner Real Madrid CF.
With the opening of its “Technodome”, the company’s new global hub R&D center later this year, Hankook Tire plans to further strengthen its technology leadership. The company will also focus on the continuous expansion of UHP and premium OE offerings as well as the Replacement tyre (RE) segment. In addition, Hankook Tire plans to enhance its market share by strengthening the global distribution channel strategy and actively expanding the relationship with global customers.