Hankook Tire Co. Ltd. reports during fiscal year 2011, it had record global sales of $5.851 billion and operating profit of $511 million.
Hankook’s double-digit growth surpasses its annual target set in the beginning of 2011 to finish upwards with a 20.9% year-over-year increase in global sales. The company’s operating profit slowed marginally as a result of sharp increase in price of imported raw materials.
Despite the economic downturn, Hankook continued its unprecedented growth in the advanced markets where it saw a 41% and 34% increase in Europe and North America, respectively, followed by healthy growth of over 20% in Asia Pacific and Latin America.
Demand for Hankook’s UHP tires continued, playing a crucial role in achieving sharp, accelerated growth in the premium tire sector, the company says. Steady expansion of its original equipment tire portfolio also contributed significantly to the growth.
Europe led all markets with accumulated UHP tire sales to finish with 59% increase year-over-year, while North America and Asia Pacific sales of UHP tires rose 27% and 15%, respectively. Supply of OE tires enjoyed a 52% increase, including UHP tires which nearly doubled, posting a 92% increase compared to its previous year’s numbers.
“In spite of uncertain global economic conditions and sharp increase in raw material prices, we were able to continue our unprecedented growth in 2011 by firmly placing our priorities to deliver utmost quality and technology in our products,” says Seung Hwa Suh, vice chairman and CEO of Hankook Tire. He adds, “We will continue to provide the best products and services while continuing to build a sustainable corporate culture to strengthen Hankook Tire’s position as a leading global company.”
