Premium tyre maker Hankook announced its global financial results for the fiscal year 2017 with consolidated sales of KRW 6.81 trillion (5.34 billion Euro) and an operating profit of KRW 793.7 billion (621.8 million Euro).

In comparison to 2016’s results, the sales increased by 2.9%. This growth is attributed to increased sales of larger size passenger and SUV tyres starting from 17-inch based on Hankook Tire’s global top-tier technology and product quality. A balanced growth in all regions also contributed to higher sales. The operating profit decreased by 28%, affected by factors such as the increased price of raw materials.

The sales of high inch tyres (over 17 inch) accounted for 48.4% of the total sales. It increased by 3.9% from the previous year, leading Hankook Tire’s growth into a global top-tier company. The company’s achievement is driven by the increased supply of original equipment (OE) tyres as well as tyres for the replacement market (RE) especially in Europe and China. Additionally, increased sales of RE tyres due to strengthened distribution channels in North America and an expanded supply of OE tyres to Japanese companies contributed to a positive sales growth.

With 2018’s target of reaching global sales revenues of KRW 7.4 trillion and operating profits of KRW 1.02 trillion, Hankook Tire plans to focus on strengthening the company’s position as a premium brand through improving competitive products, expanding sales of high inch tyres in major markets and continuous supplying OE tyres for new models of major premium automobile brands. Moreover, the company will diversify the OE portfolio to build a stable earning structure. Hankook will also optimise each regional distribution strategy.