Hankook breaks even in 2008, despite strong sales growth

ERJ staff report (RD)

Seoul, Korea - Despite record sales for the 12 months to December 2008, Hankook Tires recurring profit fell by 98 percent to KRW3400 million (Euro 1.9 million) from KRW 220 000  million a year ago. Meanwhile, the company has set a sales record, in spite of the current economic crisis, the company said 19 Jan.

Operating profit fell by half, to KRW 114 200 million compared with KRW 263 600 million a year ago. The company did not offer any explanation for the drop in profitability, although raw material prices rose substantially during the period under consideration.

Global sales increased by around 26 percent to KRW 4.07 million million (Euro 2500 million), Ultra-High Performance (UHP) tyre sales had an increase of 35 percent year on year, and in terms of region, Russia saw an increase of 98 percent in sales with Central and South America seeing a 50 percent increase in sales, Hankook said.

In particular the company's UHP tyre sales experienced very positive results in 2008. Europe experienced a 48 percent increase in sales, Latin America and Asia-Middle East regions: 27 percent, US: 21 percent, as well as a overall 42 percent increase in OE sales.

“Our continuous efforts for new partnerships with various automobile institutions and the tailoring of our products to the current environmental sustainability standards has allowed us to deliver quality products to our consumers by leveraging our Kontrol Technology in the development of our UHP products,” said Hankook ceo Seung Hwa Suh.

“I am pleased with our results this year, and look forward to the year ahead. Despite the current economic climate, I believe that Hankook Tire will be able to move forward by continuing to take our utmost efforts in tailoring to the needs of each and every market worldwide through on-going research and development for innovative products,” concluded Suh.

Hankook also said it is now aiming to achieve global sales of KRW 4.33 trillion in 2009, the company added.