ID :
197220
Tue, 07/26/2011 - 09:59
Auther :
Shortlink :
https://oananews.org//node/197220
The shortlink copeid
Hankook Tire's Q2 operating profit plunges on costs
SEOUL, July 26 (Yonhap) -- Hankook Tire Co., South Korea's leading tire maker, said Tuesday that its operating profit tumbled 33.6 percent on-year in the second quarter mainly due to a rise in raw material prices.
Operating profit came to 110.7 billion won (US$104.9 million) from April through June, compared with 166.6 billion won a year ago, Hankook Tire said in a regulatory filing.
Sales, however, rose 21.0 percent on-year to 1.58 trillion won in the three-month period, it said. The figure also represents a 8.2 percent gain from 1.46 trillion won in the previous quarter.
The company, however, did not disclose its net profit for the cited period.
The second-quarter results include performances from Hankook Tire operations in South Korea and its overseas affiliates.
"The worsening profitability stemmed from a steady rise in raw material prices," the company said in a press release. "Despite the overall sluggishness of the global tire market, we were able to pull off a sales gain because of our superior quality and better brand image."
Aggressive marketing also helped secure tire replacement demand that is estimated to have grown by 28.9 percent worldwide compared to the year before, Hankook Tire said.
The company said sales of its ultra high performance tires in Europe, North America and the Asia-Pacific region surged in the second quarter, with domestic sales increasing 77.7 percent.
The company added sales in China and Hungary reached record levels for the three month period.
Hankook Tire is the world's seventh-largest tire manufacturer in terms of sales and ranks fifth in overall output. It has production facilities in countries such as China, Indonesia and Hungary, and sells its tires in 180 countries.
Operating profit came to 110.7 billion won (US$104.9 million) from April through June, compared with 166.6 billion won a year ago, Hankook Tire said in a regulatory filing.
Sales, however, rose 21.0 percent on-year to 1.58 trillion won in the three-month period, it said. The figure also represents a 8.2 percent gain from 1.46 trillion won in the previous quarter.
The company, however, did not disclose its net profit for the cited period.
The second-quarter results include performances from Hankook Tire operations in South Korea and its overseas affiliates.
"The worsening profitability stemmed from a steady rise in raw material prices," the company said in a press release. "Despite the overall sluggishness of the global tire market, we were able to pull off a sales gain because of our superior quality and better brand image."
Aggressive marketing also helped secure tire replacement demand that is estimated to have grown by 28.9 percent worldwide compared to the year before, Hankook Tire said.
The company said sales of its ultra high performance tires in Europe, North America and the Asia-Pacific region surged in the second quarter, with domestic sales increasing 77.7 percent.
The company added sales in China and Hungary reached record levels for the three month period.
Hankook Tire is the world's seventh-largest tire manufacturer in terms of sales and ranks fifth in overall output. It has production facilities in countries such as China, Indonesia and Hungary, and sells its tires in 180 countries.
