Hankook Tire: Operating profit up 25% in 2016

Hankook Tire reports achieving consolidated sales of KRW 1.61 trillion (£1.1 billion) and an operating profit of KRW 239.8 billion (£167.2 million) in the fourth quarter of 2016. For the full year, total sales revenues amounted to KRW 6.62 trillion (£4.6 billion), and increase of 3.1 per cent, and operating profit rose 24.7 per cent to KRW 1.10 trillion (£766.8 million).

Replacement market sales volumes increased during the year, especially in the UHPT (ultra-high performance tyre) segment. Original equipment sales were up in China.

Revenue from UHPT sales accounted for 33.5 per cent of all sales in the fourth quarter of 2016, a 0.7 per cent increase in comparison to the same period of last year. For the full year, UHPT sales revenue came to 34.5 per cent.

For 2017, Hankook Tire has set a global sales revenue target of KRW 7.22 trillion, 9.1 per cent above the revenues realised last year. To achieve this, the company will focus on expanding sales of it its UHPT products as well as original equipment tyre supply to new premium car models. Hankook also plans to diversify its OE portfolio and optimise its distribution strategy for each region.