Hankook Tire today announced global annual revenue of KRW 6.68 trillion and operating profit of KRW 1.03 trillion for the fiscal year 2014.
In spite of adverse market conditions caused by the global economic recession, Hankook Tire managed to secure an overall operating profit that was on par with its impressive 2013 results and a healthy profit to sales ratio of 15.4 percent. Positive sales growth in the Ultra High Performance (UHP) tire segment and the premium Original Equipment (OE) business expansion contributed to the company’s encouraging financial results, whereas global consolidated revenue saw a marginal decline from the previous year.
Revenue from UHP tire sales continued its consistent upward momentum to finish with an overall 6.8 percent increase YoY, accounting for approximately 30 percent of Hankook Tire’s entire global sales. The company’s advanced lines of runflat tires and racing tires also exhibited strong sales in 2014 with a solid 10.8 percent increase YoY.
In addition to the promising financial results from 2014, the company’s advanced tire technology was recognized by leading global automakers who partnered with Hankook Tire in order to secure OE runflat tire contracts for premium German auto brands. The company’s recent OE business growth is also highlighted by Hankook Tire’s steady expansion into various market segments including sports cars, luxury SUVs, and commercial vehicles.
2014 also saw several of Hankook Tire’s long-term strategic investments come to fruition with ground being broken on the Hankook Technodome – the company’s new R&D center in Korea – and on the new Tennessee Plant in the United States. Hankook Tire also launched Laufenn; a new entry-level global brand to aid in the company’s bid to become the global leader in top-tier tire production and sales.
Seung Hwa Suh, Vice Chairman and CEO of Hankook Tire, said, “Our strong performance in 2014 will serve as the foundation for Hankook Tire’s plans to grow and expand its impact on the global tire market. Hankook Tire takes innovation seriously, and we will continue to act as leaders in the UHP tire segment. By targeting North America and the emerging markets, Hankook Tire’s future-oriented growth strategy will place us on track to become the world’s leading tire company.”
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