Hankook Tire reports 21.9% y/y decline in Q1 operating profit

Drop in revenues and operating profit to slower economic growth in China and currency fluctuations in Europe

Hankook Tire has reported a 21.9% year-on-year (y/y) reduction in its operating profit during the first quarter of 2015. In a statement sent to IHS Automotive, the tyre-maker said its quarterly operating profit stood at KRW203.2 billion (USD189.1 million) during the three-month period. Sales revenues during the quarter contracted 11.3% y/y to KRW1.49 trillion. The company attributed the drop in revenues and operating profit to slower economic growth in China and currency fluctuations in Europe – an important market for the company. Operating profit, as a margin of sales revenues, declined to 13.7% in the quarter from 15.5% in the same period last year.