Hankook Tire's Global Sales and Operating Profit Hit Record High in 2010
- Global sales increased by 11.5% year-over-year, exceeding KRW 5 trillion for the first time in Hankook Tire's history
- USA and Canada record sales of 12.6 million tires, totaling 1 billion US dollars with a growth rate of 21%
- Hankook Tire sets aggressive 2011 global sales target to exceed KRW 6 trillion with expanded production capacity
January 28th, 2011 (Wayne, New Jersey) - Hankook Tire (http://www.hankooktire.com), the seventh-largest and one of the fastest growing tire companies in the world, announced its fiscal year 2010 performance results with global sales of KRW 5.4 trillion and an operating profit of KRW 585.8 billion in tire sales, breaking the previous annual sales record once again.
Fulfilling its aggressive global sales target set in the beginning of 2010 to exceed KRW 5.1 trillion, Hankook Tire marked 5.4 trillion, recording an 11.5% YoY increase. The company's 2010 operating profit increased by 6.7% YoY, despite the continuous rise in raw material prices.
"In 2010, our company has had another successful, record-breaking year in North America as well as globally," said So Il Lee, President of Hankook Tire America Corp. "Hankook Tire North America, USA and Canada combined, recorded sales of 12.6 million tires, totaling 1 billion US dollars with a growth rate of 21 percent."
Key drivers for this incomparable accomplishment were surging sales in the emerging markets, steady growth in Hankook's strategic markets in North America, Europe and Asia Pacific, and the increasing demand for Hankook Tire's Ultra High Performance (UHP) tires. The overall global sales of UHP tires marked a 42.2% YoY increase.
The remarkable achievements in the emerging markets contributed greatly to the company's growth momentum. Sales in Latin America and the CIS region rose 64.7% and 49.7% YoY respectively.
In addition to the success in the emerging markets, Hankook Tire's expanding reputation for high-quality tires in the developed markets were evident in the sales increase in U.S. and Canada. Also, Hankook manufactured and sold the most tires ever to the European markets from its Hungarian plant.
Not only Hungary, but also the production bases in Korea and China were operated at one hundred percent capacity, achieving maximum productivity and unprecedented figures for fiscal year 2010. Positive performance was noticeable in the Original Equipment business of Korea and China. Hankook Tire's UHP tire supply to automakers jumped 80.7% in Korea and 57.3% in China from last year. Additionally, Hankook Tire has been expanding its global OE portfolio to leading automobile manufacturers due to its increased brand value and global customers' trust on Hankook's superb quality.
Mr. Seung Hwa Suh, Vice Chairman & CEO of Hankook Tire said, "2010 was the cornerstone of a new era for Hankook Tire, as we achieved record performance and set new plans for further growth, including the expansion of Hankook's production capacity with new plants in Indonesia and China." Mr. Suh added, "In 2011 as we celebrate our 70th anniversary, Hankook's priorities are to build a sustainable and creative corporate culture as well as to further initiate environment-friendly approaches as a leading global tire company."
In 2011, Hankook Tire aims to achieve global sales of KRW 6.06 trillion, a tremendous target upgrade that reflects the boosted production capacity with the new manufacturing unit of its Hungarian plant. This year, the company also plans to enhance its brand value based on quality standards of technology and service competencies. In this regard, Hankook Tire has recently announced that starting this year, it will be the exclusive tire supplier to DTM international touring car racing series.
Taking advantage of its current strengths, the company will continue to upgrade its competitiveness in large-scale production, global and local distribution networks, R&D prowess and strategic sales and marketing.
2010 Consolidated Profit (Tire sales only)
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Source: Modern Tire Dealer * Exchange Rate:
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About Hankook Tire Co., Ltd
Hankook Tire (Vice Chairman & 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, 4x4s, SUVs, light trucks, campers, trucks, buses and motor sports. It invests approximately five percent of its revenue in research and development and develops cutting-edge technologies trough its five global R&D Centers, meeting regional customer demands and enhancing customer satisfaction. Selling in over 180 countries around the world, the company has more than 14,000 employees. Approximately 70 percent of its revenue comes from growing overseas sales. For more information, please visit Hankook Tire's global web site at www.hankooktire.com