Hankook reports slump in 2015 Q2 sales

Hankook revealed its second quarter global consolidated sales of 2015 at 1.62 trillion Won. Compared to the sales figures during the same period of last year that stood at 1.66 trillion Won, the company has witnessed a slight drop in its sales this year. According to the manufacturer, the overall sales of the company in the second quarter of 2015 is $1.47 billion after compensating for the exchange rate.

The operating income of the company is 201.1 billion Won, which is also showing a drop of 20 per cent compared to the same period last year. However, the tyre maker has not released its net income figures.

The company says that several factors were responsible for the drop in its global sales revenue and operating income in the second quarter of this year. Some of them are:

1. Dropping prices due to intense competition in the global tyre market.

2. Slowdown in Chinese market growth.

3. Fluctuations in exchange rates.

That said, there was an improvement of 12-14 per cent in the developed markets of Europe and North America. Hankook is expecting the sales to continue growing for some time and said the company will lead further sales expansion in North America.

As per the company's data, the manufacturer has reported a 3.5 per cent increase in the Ultra High Performance Tyre (UHPT) segment. The UHPT segment formed a major chunk of the company's total sales in passenger car market, 34 per cent to be precise. This segment has also shown signs of sustainable sales growth.

Hankook says that it will work to further improve the company’s position in the premium tyre market, particularly in Europe and North America. It will also continue to accelerate its business growth as a global top-tier tyre company by expanding its supply for larger tyre lines, including UHPT and truck/bus radials.