Hankook Tire has introduced a new corporate identity as part of efforts to engineer a new growth surge. The new logo aims to reflect progressive and innovative thinking, specialised technology, passion, sophistication, dynamism, and internationalism. It also visualizes brand individuality. The symbol stands for speed and flight and is combined with a mixed-script logotype. The new logo was designed by UK designer Neville Brody.
Hankook Tire Manufacturing Co Ltd is considering investing up to 500 million Dolars to build a plant in the Czech Republic. This follows the decision of Hyundai to build cars in Slovakia. The area is rapidly becoming the centre of the new European automotive industry. Hankook Tire may be looking at other countries in the region but they are clearly considering the Czech Republic as an option. Hyundai announced on Tuesday that it will set up its factory in the north western city of Zilina, about 30 km from the border with the Czech Republic, where a number of foreign car part makers are already present.
Hankook Tire is expecting to see a 19 per cent growth in operating profit, giving a 14 per cent increase in net profit in 2004. Last year the company‘s conservative estimates were exceeded by 70 and 44 per cent respectively.
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.
Hankook Tire’s North American sales rose by 30 per cent in 2003 to close to 250 million US dollars. Sales were driven by increased demand for high performance tyres. In all Hankook’s exports climbed to 700 million US dollars, amounting to some 20 million tyres and a 59 per cent increase in sales of performance tyres.
The sales increase combined with increased prices helped improve the company’s bottom line more than doubling income for the first three quarters of 2003.
Hankook Tire has announced that it has gained an OE order from Ford for the Econoline van for the next five years. The Korean firm is to supply 380,000 tyres every year. “This large contract signifies the worldwide recognition of our product quality and should contribute to stronger brand power,” the firm said in a statement.
Hankook Tire has announced its third quarter results, which prove its strong earnings growth stories. Its net profit was improved by 91.6 per cent YTD. A slight slowdown of its 3Q numbers came mainly from fewer working days. Hankook exhibited another good profitability growth again. Despite its YTD sales growth being at only 9.1 per cent, its operating profit was enhanced by 108.2 per cent YTD and its net profit improved by 91.6 per cent. Meanwhile, there was a slight slowdown of numbers on a QoQ basis, down 7.3 per cent in sales growth and down 0.7 per cent in operating profit. Such a decline was partially due to no sales contribution from apartment sales. But the bigger reason comes from fewer working days in 3Q03 (minus 10 days in YoY). As the company has three-shift production and its fixed cost burden amounts to 55 per cent (largely from depreciation, salaries and others), the fewer number of working days enlarged fixed cost burden and its operating profit was slightly decreased by 0.7 per cent QoQ.
A new “hybrid” pattern tyre from Hankook – the DynaPro AT – is designed for optimum on-road performance, combined with good off-road traction. In interlocking shoulder rib gives excellent traction, and is flexible, yet stable, for optimum handling. Circumferential grooves provide efficient water evacuation, while zig-zag grooves promote traction on snow and off-road.
Hankook Tire Manufacturing Co. will be supplying Ford with tires for the F-150. “Supply to the world’s top auto maker should enhance the brand recognition of Hankook Tire in the global market,” said Cho Choong-Hwan, Hankook’s top executive. Hankook Tire America Corp. is expected to release more details on this domestic OE contract with Ford soon.
Steve Manuel has joined Hankook UK as Technical Truck Manager, in which capacity he will be working alongside Barrie Horrocks. Steve’s career began over 20 years ago at ATS, then he moved to Central Tyre in Chester as a truck tyre fitter, becoming branch manager in due course. Later he was promoted into Pirelli as a field-based service engineer for the truck technical department.
Michelin and Hankook have signed a partnership agreement, involving co-operation in R&D, manufacturing and distribution. Hankook will be licensed to produce Michelin’s PAX run-flat technology as part of the agreement. Michelin will take a 10 per cent stake in the Korean company, which, based on the share price when the deal was signed, is estimated to be worth just over US$ 33 million. Shares in Hankook rose almost five per cent on the news, nearly four times better than the market in general.
Hankook’s Chinese operation is planning to raise 90 million dollars in capital. This will be used to meet maturing debts and facilitate expansion. Some 50 million dollars of the funding will be guaranteed by Hankook.
Goodyear shares fell to just 17 US$ on Friday; a loss of 6 per cent over the week. Asian companies fared better, with gains for Hankook (+10 p.c.), Kumho (+ 9 p.c.), Sumitomo Rubber (+ 8 p.c.) and Bridgestone (+ 8 p.c.).
Production is back to normal after a fire at Hankook’s state of the art tyre factory in Kumsan, Korea. Details are sketchy, but it is believed that the fire started in, and was confined to, the mixing area, but production continued using materials brought from other factories. The effect on supply of product was minimal.
The Korean tyre manufacturer Hankook is developing three tyre sizes for Renault. These are 155/65-14 and 165/70-14 reinforced for the Twingo and size 185/65-15 for the Kangoo. First deliveries will start at the end of next year. At present the major OE-suppliers to Renault are Michelin, Continental and Dunlop.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
