WAYNE, N.J. — Hankook has reported year-on-year sales growth of 18.4 percent during the first quarter of 2008, delivering the company its first-ever quarterly sales exceeding $1 billion.

The company attained sales of $1.041 billion. Sales figures for the three-month period included an impressive upsurge in worldwide UHP sector sales of more than 40 percent and sales to OE manufacturers growing by 15.7 percent.

Sales to Europe grew by 25.5 percent year-on-year, boosted by a massive increase in year-on-year sales to the Russian market. Sales to North America also recorded an 18.1 percent year-on-year increase. In addition, sales to Latin America, Asia-Pacific, Africa and the Middle East increased year-on-year by 22.5 percent.

Seung Hwa Suh, Global CEO of Hankook Tire, said, “Our long-term and consistent investments continue to strengthen our technology, and the surge in sales for our high-end products reflects our growing reputation for providing high-quality, high-performance tires. The company is in a strong position to build on this reputation, and we should continue to highlight the quality and technology behind our tires to sustain success in emerging markets, as well as continue to challenge in other more established markets.”

Rising supply costs continue to provide a challenging operating environment for all tire manufacturers. Hankook Tire’s cost of sales, including investments throughout its production facilities to increase production capacity to 74 million tires by the end of 2008, increased by 21.9 percent to $737.1 million.

“The tire industry is fiercely competitive and it is critical that we continue to manage costs effectively while balancing investment to ensure sustained future growth,” said Suh. “We continue to take a long term view. Demand for our quality products continues to outstrip supply, and we are continuing to increase production in all countries where we are manufacturing.” (Courtesy of Tyres & Accessories/Tire Review)