Hankook Tire’s operating profit for 4Q03 came in at 21.3bn Won (14.39m Euro), 59 per cent lower than IBES consensus estimates of 51.2bn Won (34.595m Euro). 4Q03 net profit was also thin at 1.9bn Won (1.184m Euro), disappointing street forecasts by a whopping 94 per cent. Operating profit also fell below consensus estimates for the full year, coming in at 170.4bn Won (115.147m Euro). There appear to be three key reasons for the disappointment: payment of 25bn Won (16.894m Euro) in bonuses during 4Q; a sharp increase in freight rates (increased by 52 per cent YoY); and a general rise in most raw material costs. Discounting the bonus figures, the company would have met estimates.