Hankook Tire recently announced financial results for the fiscal year 2013. The company posted record global sales of KRW 7.060 trillion and operating profit of KRW 1.031 trillion, both figures marking the highest in its history with a healthy operating profit to sales ratio of 14.6 percent.
In 2013, Hankook Tire continued upwards trend in its financial performance amid global economic downturn, highlighted by the company’s record operating profit soaring at a rate of 12.2percent YoY and breaking into the KRW 1 trillion-mark.
Hankook Tire’s ultra-high performance (UHP) tire sales have played a key growth driver for this record operating profit. Accumulated sales in UHP tire segment accounted for 26.5percent of the entire global sales and have shown a robust growth to finish with 3.4percent increase YoY. China and Europe led all markets with accumulated UHP tire sales by posting 13.6percent and 12.9percent increases YoY respectively.
Recent series of Hankook Tire’s original equipment (OE) fitment agreements also featured an important impetus for its outstanding financial growth. Having completed Germany’s “Big Three” by adding Mercedes-Benz to its premium OE portfolio as well as supplying original fitments to the best-selling models of top Japanese auto brands, Hankook Tire demonstrated its unequivocal competence to meet the precise requirements of the world’s most premium automobiles.
Hankook Tire’s bold strategic movements with foresighted capital expenditure in both production capacity and R&D have been the driving force behind creating solid foundation for sustainable growth. The company has been steadily expanding its global production footholds in strategic locations with Indonesia and Chongqing (China) plants in 2013 and recently announced plans for a new US production facility. Also, the investments for a new Central R&D Center and a Test Engineering Center in Korea reinforced the company’s pursuit to further advance its technological prowess beyond competition.
“Based on our foresight into the future, Hankook Tire’s consistent investments and future-oriented R&D operation have greatly contributed to solidifying the company’s headway into becoming a global top-tier tire brand,” said Mr. Seung Hwa Suh, Vice Chairman and CEO of Hankook Tire. He also added, “With strong foundation based on proven technological excellence, Hankook Tire in 2014 will further accelerate our business growth and become a strong, reputable company that contributes to advancement in driving.”
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