SEOUL, South Korea (Feb. 1, 2013) — Hankook Tire Co. Inc. generated 57.9-percent higher operating profits last year vs. 2011 on 8.3-percent higher sales, as sales of the firm's high-performance tires jumped more than 30 percent over the previous year.
Operating income rose to $812.9 million on revenue of $6.26 billion for an earnings/sales ratio of nearly 13 percent, a four percentage point improvement.
Hankook recorded 20-percent growth in the U.S. last year, hitting $1.2 billion, as brand recognition and demand, both replacement and OE, improved, the company said.
Hankook achieved its record performance despite a "stagnant global economic situation," according to Seung Hwa Suh, vice chairman and CEO, who said the firm will continue its "aggressive investment in R&D and brand-equity enhancement" to strengthen the firm's position as a premium brand.
Mr. Suh forecasts growth of about 5 percent this year and predicts Hankook will move up the global tire ranking to No. 5 by 2014. To do so, however, would require growth of 20 percent or bettter, based on the reported sales of Pirelli & C. S.p.A. and Sumitomo Rubber Industries Ltd., the Nos. 5 and 6 tire makers in 2011.
Pushing the firm's growth in high-performance was demand in emerging markets such as Russia/CIS and Latin America, where sales collectively jumped 86.5 percent. Hankook said it will continue to target growth in emerging markets, which offer both OE and replacement market opportunities.
Hankook also reported strong growth in its OE business, with sales jumping 26.7 percent. Among new fitments gained last year were UHP tires for the new BMW 1 and 3 Series, Lincoln MKZ, and a number of Audi, Chrysler and Volkswagen nameplates.
Byeong Jin Lee, president of Hankook Tire America Corp., said the company's "continued efforts to build brand awareness and to provide the highest level of product value" helped Hankook grow in the U.S.
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