ERJ staff report (LMH)
Seoul, Korea -- Hankook Tire has announced its financial results for the fiscal year 2011, with record global sales of KRW 6.484 trillion (Euro 4447 million) and operating profit of KRW 566.3 billion.
Hankook Tire said in a 13 Jan news release that it continued to record double-digit growth surpassing its annual target set in the beginning of 2011 to finish upwards with a 20.9 percent year-on-year increase in global sales, while the company's operating profit slowed marginally as a result of sharp increase in price of imported raw materials.
Despite economic downturn, Hankook Tire continued its unprecedented growth in the advanced markets where it saw a 41 percent and 34 percent increase in Europe and North America, respectively, followed by healthy growth of over 20 percent in Asia Pacific and Latin America.
Demand for the company's UHP (Ultra High Performance) tyres further increased, playing a crucial role in achieving sharp, accelerated growth in the premium tyre sector. Steady expansion of original equipment tyre portfolio also contributed significantly, a key indicator of enhanced brand equity and consumers' trust in Hankook Tire's quality of its products.
Europe led all markets with accumulated UHP tyre sales to finish with 59 percent increase YoY, while North America and Asia Pacific sales of UHP tyres rose 27 percent and 15 percent respectively. Supply of OE (Original Equipment) tyres, which are delivered to auto makers to be factory-installed in their new cars, enjoyed a drastic 52 percent increase, where among them were UHP tyres which nearly doubled, posting a 92 percent increase compared to its previous year's numbers.
â€œIn 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,â€ said Mr. Seung Hwa Suh, Vice Chairman & CEO of Hankook Tire.
He added, â€œWe 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.â€
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Press release from Hankook