UHP segment sales a highlight for ‘record’ Hankook year

Hankook Tire says its global sales last year reached record levels. The Korean company’s tyre sales in 2011 amounted to KRW 6.484 trillion (£3.7 billion), a 20.9 per cent year-on-year increase. Yet thanks to steep rises in raw material prices this bumper sales year was not accompanied by a corresponding increase in operating profit – in 2011 this reached KRW 566.3 billion (£325.1 million), a decline of 8.8 per cent on the previous year.

Despite the economic downturn, Hankook says it continued “unprecedented” growth in mature markets, where it saw a 41 per cent and 34% per cent increase in Europe and North America, respectively. Growth in the Asia Pacific and Latin America regions was “over 20 per cent”, the tyre maker reports. Demand for the company’s UHP tyres further increased; European sales in this sector grew 59 per cent year-on-year, while North America and Asia Pacific sales of UHP tyres rose 27 per cent and 15 per cent respectively. Supply of original equipment tyres increased 52 per cent, while original equipment sales of UHP tyres grew 92 per cent year-on-year.

“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,” stated Seung Hwa Suh, vice chairman & CEO of Hankook Tire. “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.”