Hankook Tire announced the company’s 2018 financial results with consolidated global sales of KRW 6.79 trillion (approx. 5.23 billion Euro) and an operating profit of KRW 703.7 billion (approx. 541.9 million Euro).
Driven by global top-tier technology and premium product quality, sales of high inch tyres, starting at 18-inch, in major markets such as Europe and the United States, accounted for 52.3% of passenger car tyres, leading to a 3.9% increase compared to 2017.
Especially in the fourth quarter replacement market sales and the sales-share of high inch tyres continued to increase due to strengthened distribution channels in the Korean market. In addition, the supply of original equipment tyres for SUVs and Japanese automobiles sold in North America continued to expand.
There was a slowdown in demand from global auto markets like China, that led to a decrease in sales of replacement tyres and supply of OE, which affected the overall financial result negatively.
With 2019’s target of reaching global sales revenues of KRW 7.4 trillion and operating profits of KRW 750.0 billion, Hankook Tire plans to focus on strengthening the company’s position as a premium brand by increasing sales of high inch tyres, starting at 18-inch, in major markets, supplying OE tyres for premium cars, and strengthening competitiveness in its premium product lines. Hankook Tire also plans to diversify its OE portfolio to establish a stable growth structure and optimize distribution strategies for each region.
Moreover, in order to stay up to speed with the rapidly changing industry more effectively, Hankook Tire aims to continuously strengthen its fast-paced and flexible corporate culture, thereby creating a proactive corporate culture through innovating the way employees work, and accelerate its way toward a global top-tier company.
