SEOUL, South Korea (Oct. 28, 2010)—Hankook Tire Co. Ltd.'s operating profits in the quarter ended Sept. 30 fell 40.6 percent despite record quarterly sales.
Operating income fell to $137.7 million on the negative effects of raw materials price increases, Hankook said. Revenue grew 7.1 percent to $1.3 billion on rising sales in China, Hungary, Latin America, Eastern Europe and South Korea and global demand for high-performance tires.
Operating earnings for the nine-month period were up 22 percent to $467.8 million over fiscal 2009, although they've declined for three straight quarters. Sales for the first three quarters climbed 12.2 percent to $3.6 billion, Hankook reported.
The operating margin for the quarter fell to 8.8 percent; for the nine months it slipped to 12.9 percent. Hankook said its raw materials costs in the third quarter rose 47 percent over 2009.
Seung Hwa Suh, Hankook vice chairman and CEO, cited the company's “untiring growth momentum” this year as grounds for his optimism that Hankook will hit its 2010 sales and earnings goals and launch the firm toward a “new era of sustainable growth.”