- Hankook Reports Solid Financial Results for FY 2014
- Hankook Tire announces global sales of EUR 4.78 billion (KRW 6.68 trillion) in 2014. The benefits of the company’s commitment to technological innovation are visible in strong UHP tyre market growth and premium OE portfolio expansion.
Hankook Tire today announced global annual revenue of EUR 4.78 billion (KRW 6.68 trillion) and operating profit of EUR 737.1 million (KRW 1.03 trillion) for the fiscal year 2014.
In spite of adverse market conditions caused by the global economic recession, Hankook Tire managed to secure an overall operating profit that was on par with its impressive 2013 results and a healthy profit to sales ratio of 15.4%. Positive sales growth in the Ultra High Performance (UHP) tyre segment and the premium Original Equipment (OE) business expansion contributed to the company’s encouraging financial results.
Revenue from UHP tyre sales continued its consistent upward momentum to finish with an overall 6.8% increase YoY, accounting for approximately 30% of Hankook Tire’s entire global sales. The company’s advanced lines of runflat tyres and motorsports tyres also exhibited strong sales in 2014 with a solid 10.8% increase YoY.
In addition to the promising financial results from 2014, the company’s advanced tyre technology was recognized by leading global automakers who partnered with Hankook Tire in order to secure OE tyre contracts (including runflat) for premium German auto brands. The company’s recent OE business growth is also highlighted by Hankook Tire’s steady expansion into various market segments including sports cars, luxury SUVs, and commercial vehicles.
2014 also saw several of Hankook Tire’s long-term strategic investments come to fruition with ground being broken on the Hankook Technodome – the company’s new R&D center in Korea – and on the new Tennessee Plant in the United States. On the US-market Hankook Tire also launched Laufenn; a new entry-level global brand to aid in the company’s bid to become one of the global leaders in top-tier tyre production and sales.
Mr. Seung Hwa Suh, Vice Chairman and CEO of Hankook Tire, said, “Our strong performance in 2014 will serve as the foundation for Hankook Tire’s plans to grow and expand its impact on the global tyre market. Hankook Tire takes innovation seriously, and we will continue to act as leaders in the UHP tyre segment. By targeting North America and the emerging markets, Hankook Tire’s future-oriented growth strategy will place us on track to become one of the world’s leading tyre companies.”
2014 Consolidated Financial Result
| (Unit: Billion KRW) | FY 2013 | FY 2014 |
| Sales | 7,069.2 | 6,679.5 |
| Operating Profit | 1,031.0 | 1,031.1 |
| (Unit: Million USD) | FY 2013 | FY 2014 |
| Sales | 6,455.7 | 6,342.0 |
| Operating Profit | 941.5 | 979.0 |
| (Unit: Million EUR) | FY 2013 | FY 2014 |
| Sales | 4,863.4 | 4,775.1 |
| Operating Profit | 709.3 | 737.1 |
*Exchange Rates:
| FY 2013 | FY 2014 | |
| USD / KRW | 1,095.04 | 1,053.22 |
| EUR / KRW | 1,453.56 | 1,398.82 |
(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)
