Hankook Tire Grows Fastest of Major Tire Makers to Consolidate World Number Seven Position
- Sustained 20% sales growth contributes to Hankook Tire’s continued rise up the world rankings
- Sales growth coupled with 8.4% profit margin in 2006, the highest amongst all major tire makers
Seoul, Korea, January 28th, 2008 ? Hankook Tire (www.hankooktire.com) was the world’s fastest growing tire maker by sales in 2007 and consolidated its position as the seventh largest tire manufacturer, according to independent industry figures published by Modern Tire Dealer.
The figures show how Hankook Tire’s consistent investment of 5% of revenues in research and development, as well as its strategic focus on quality, has translated into estimated sales of US$3.5 billion in 2007, representing year-on-year growth of 20.6%. The company has climbed from eighth in 2005 and eleventh in 2001.
Opening its first European, €500 million (approx. US$700m*) production facility in June 2007, as well as being a market leader in Korea and China, the company recorded both the industry’s highest profit margin (8.4%) and second highest employee-to-sales ratio in 2006 (approximately US$350,000 or €250,000*).
Mr. Seung Hwa Suh, CEO, Hankook Tire, said, “Gaining sales volume alongside profitability is a reflection of our increasing reputation for quality and high-performance tires. The results show that we have made significant ground in closing the gap to the world’s number six position and independently verifies our ongoing success in making inroads into new and established markets. We will continue to focus on key growth drivers that will sustain this success over the long-term.”
Hankook Tire will disclose 2007 global performance results on the 11th February 2008. The company will continue to base growth on four key strategic business drivers: ongoing improvement of management and leadership processes and structures; increased production and distribution capabilities; consistent investment in technological innovation; and building the Hankook Tire brand by leveraging OEM reputation and conducting ‘smart marketing’ activities.
Notes to Editor
Figures from Modern Tire Dealer, new tire sales (estimates):
|Sales (Fiscal year 2007 in billions of U.S. dollars)|
||% Y-on-Y Growth|
||Goodyear Tire & Rubber Co.
||Pirelli & C. SpA
||Sumitomo Rubber Industries
||Hankook Tire Co.
||Yokohama Rubber Co.
||Cooper Tire & Rubber Co.
||Kumho Tire Co. Inc.
||Toyo Tire & Rubber
|2006 Fiscal Year|
Net profit to net sales ratios
|Hankook Tire Co.
|Yokohama Rubber Co.
|Toyo Tires (2007 Fiscal Year)
|Kumho Tire Co. Inc.
|Goodyear Tire & Rubber Co.
|Cooper Tire & & Rubber Co.
|Pirelli & C. SpA
* Exchange rate figures calculated based on values calculated in yearly average.
About Hankook Tire Co., Ltd
Hankook Tire (CEO: Seung Hwa Suh) is the seventh largest and one of the fastest growing tire manufacturers in the world. It produces innovative, superior quality, and high performance radial tires for passenger cars, light trucks (SUVs, RVs, and etc.), trucks, buses and special motor sports vehicles. It invests approximately five per cent of revenue in research and development and develops cutting-edge technologies through its five global R&D Centers meeting regional customer demands and enhancing customer satisfaction. Selling in 170 countries around the world, the company has more than 12,000 employees around the world. Approximately 70% of revenue comes from growing overseas sales.
For more information, please visit Hankook Tire’s web site at www.hankooktire.com.
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