Hankook Tire Q4 sales steady, full-year results show decline

Hankook Tire has reported fourth quarter 2015 sales of KRW 1.61 trillion (£945.3 million), a decrease of 0.9 per cent compared with the fourth quarter a year earlier, and a 2.5 per cent year-on-year decline in operating profit, which amounted to KRW 238.3 billion (£139.9 million) in the final quarter of last year. The tyre maker shares that sales of its ultra-high performance (UHP) tyre segment grew 6.4 per cent year-on-year and now account for 33 per cent of the company’s overall revenue.

“Despite the sluggish global economy, Hankook Tire secured overall sales and operating profits that are on par with the results of the same period in the previous year,” wrote Hankook Tire in a statement. The tyre maker notes that it performed particularly well in North America during the final quarter of last year, with overall sales there increasing 20 per cent year-on-year and UHP segment sales rising 29 per cent. “With this steady positive growth, Hankook Tire expects to further reinforce its competitiveness in the UHP tyre segment, an important source of profit and creation of new technology.”

For the full year, Hankook Tire’s sales decreased 3.5 per cent to KRW 6.44 trillion (£3.8 billion), while operating profit dropped 14.3 per cent to KRW 884 billion (£519.0 million). Ordinary income fell 10.1 per cent to KRW 841 billion (£493.8 million), while EBITDA declined 5.3 per cent year-on-year to KRW 1.38 trillion (£810.3 million) and the margin reduced from 21.9 per cent to 21.5 per cent.

Hankook states that it will continue to “enhance its presence in North America and Europe and to focus on the sales expansion in the UHP and SUV tyre segments.” In addition, the company plans to “continue its stable growth with an optimised global network and strengthen its position as a global top-tier tyre maker by diversifying the company’s premium model portfolio among its OE business.”

Further information about Hankook Tire’s fourth quarter and full-year 2015 results can be found in our company profiles and reports section.