Hankook Tire recently announced its financial results for the fiscal year 2012 with an exceptional sales record of KRW 7.029 trillion, asserting a YoY increase of 8.3 percent. The company’s operating profit for the same fiscal year has also achieved a robust increase to KRW 912.9 billion at 57.9 percent YoY.
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Despite a stagnant global economic situation during 2012 accompanied by the Euro-zone financial crisis, Hankook Tire was able to set a global sales record largely attributing to a sharp increase in sales performance of the company’s ultra-high performance (UHP) tires as well as the enhanced brand equity as a premium tire manufacturer.
Demand for Hankook Tire’s UHP tires continued its hot streak, evident in its accumulated global sales performance revealing a healthy growth at the rate of 30.2 percent YoY. In particular, the UHP tire sales in emerging markets including Russia, CIS and Latin America led the growth, collectively achieving 86.5 percent increase YoY.
Expansion of the original equipment (OE) fitment portfolio highlighted by growing partnerships with premium automakers also contributed significantly to the company’s sales record. Hankook Tire’s OE supply contracts to global premium automakers jumped by 27.6 percent YoY, led by factory-installation of UHP tires to BMW New-1 and -3 Series, Lincoln MKZ, as well as Audi, Volkswagen and Chrysler brands. In China, OE fitment contracts to Audi alone more than doubled registering YoY increase of 156 percent.
Hankook Tire also saw impressive growth in the United States recording sales of $1.2 billion U.S. in 2012, an increase of 20 percent over 2011. Increased brand recognition and demand, both in the areas of replacement and original equipment tires, was a leading factor to this growth.
“Hankook is dedicated to providing tires to consumers and our OE partners that meet the quality and performance that they have come to expect from the Hankook brand,” said Byeong Jin Lee, President of Hankook Tire America Corp. “Our continued efforts to build brand awareness and to provide the highest level of product value have certainly helped us in the U.S. and we will continue our efforts in 2013 and beyond.”
Such a sweeping upward momentum in the UHP segment performance proves Hankook Tire’s advanced product quality with cutting-edge technology and strong R&D capability. Hankook Tire is increasingly becoming a recognized brand in the UHP segment, having demonstrated superior quality and performance through exclusive tire sponsorships for major motorsports events in Europe such as the world’s renowned Deutsche Tourenwagen Masters (DTM). Accumulated experience and technological know-how obtained from developing racing tires for these various motorsports are accelerating Hankook Tire’s product quality enhancement, leading to improved brand equity as a premium tire manufacturer.
“Despite stagnant global economic situation, Hankook Tire was able to continue its upward growth trend in 2012 by firmly placing our top priority to deliver the highest tire performance and quality to our customers around the world,” says Mr. Seung Hwa Suh, Vice Chairman & CEO of Hankook Tire. He also adds, “We will continue our aggressive investment in R&D and brand equity enhancement in order to strengthen Hankook Tire’s position as a premium brand, and proactively pave our way towards becoming the global top-five tire company by 2014.”
In 2013, Hankook Tire aims to overcome the continued unfavorable global economic situation with its proactive market penetration in emerging economies where automobile market is expanding and also with steady market supply to advanced countries where replacement equipment (RE) segment is also rising. Hankook Tire’s annual target for global sales revenue in the fiscal year of 2013 is set at KRW 7.369 trillion.
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