Hankook posts 21 percent growth in U.S. tire sales

Jan. 1, 2020
Hankook's 2010 fiscal financial performance resulted in global tire sales of KRW 5.4 trillion (South Korean funds) with an operating profit of KRW 585.8 billion, again breaking the company?s previous annual sales record.
Hankook's 2010 fiscal financial performance resulted in global tire sales of KRW 5.4 trillion (South Korean funds) with an operating profit of KRW 585.8 billion, again breaking the company’s previous annual sales record.

Fulfilling its aggressive global sales target set in the beginning of 2010 to exceed KRW 5.1 trillion, Hankook marked KRW 5.4 trillion, recording an 11.5 percent year-over-year increase. The company’s operating profit rose by 6.7 percent despite a continuous rise in raw material prices.

“In 2010, our company has had another successful, record- breaking year in North America as well as globally,” says 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 U.S. dollars with a growth rate of 21 percent.”

Key drivers were surging sales in the emerging markets, steady growth in Hankook’s strategic markets in North America, Europe and Asia Pacific, and an increasing demand for ultra-high performance tires. The overall global sales of UHP tires posted a 42.2 percent rise.

The emerging markets achievements contributed greatly to the company’s growth momentum, according to Lee. Sales in Latin America and the CIS region rose 64.7 percent and 49.7 percent, respectively.

Also, Hankook manufactured and sold the most tires ever to the European markets from its Hungarian plant, Lee says.

 

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Not only in Hungary, but also the production bases in Korea and China were operated at 100 percent capacity, achieving maximum productivity and unprecedented figures for the year.

Positive performance was noticeable in the original equipment business in Korea and China. Hankook’s UHP tire supply to automakers jumped 80.7 percent in Korea and 57.3 percent in China.

Last year “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,” says Seung Hwa Suh, vice chairman and CEO.

“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,” he adds.

For 2011, Hankook aims to achieve global sales of KRW 6.06 trillion, an upgrade that reflects the boosted production capacity with the new manufacturing unit of its Hungarian plant. The company also plans to enhance its brand value based on quality standards of technology and service competencies, Suh says. In this regard, Hankook will be the exclusive tire supplier to DTM international touring car racing series.

Suh notes that the company will continue to upgrade its competitiveness in large-scale production, global and local distribution networks, research and development and strategic sales and marketing.

For more information, visit www.hankooktire.com.

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