Seoul, Korea / Neu-Isenburg, Germany,
Hankook Tire announced the company’s 2019 financial results result with consolidated global sales of KRW 6.8964 trillion (approx. 5,285 billion Euro) and an operating profit of KRW 542.9 billion (approx. 416,076 million Euro).
Driven by global premium technologies and excellent product quality, sales of high-inch tyres (over 17 inches) amounted to 55.4% of all sales, a 3.1% YoY increase, thereby strengthening Hankook’s premium brand value. Especially, the sales proportion of high-inch tyres in China grew, leading to a much more stable growth in the replacement tyre market.
Aligned to the demand growth in the global SUV market, Hankook also strengthened its high-inch tyre line-up for this segment by expanding partnerships with renowned car makers, namely supplying original equipment (OE) tyres to Porsche’s third generation of the Cayenne, new Audi Q8, and Audi SQ8 TDI.
However, sales were affected from the intensified global tyre market competition due to slowdown in demand from the global automotive market and uncertainty stemming from trade disputes. Both led to an operating profit decrease.
With 2020’s target of reaching global sales revenues of KRW 7.2 trillion and improving YoY operating profit margins, Hankook Tire plans to focus on enhancing its premium image through increasing sales of high-inch tyres in major markets, supplying OE tyres for premium cars, and strengthening competitiveness in its product lines. In addition, the company plans to focus on enhancing competitiveness by building a stable growth structure through securing new distribution channels and strengthening synergies between the original equipment and replacement sector and continuously optimizing distribution strategies by region.
Moreover, in order to cope with the rapidly changing industry more effectively, Hankook Tire aims to continuously strengthen its corporate culture, thereby creating a proactive corporate culture through innovating the way employees work, and accelerate its road toward a global top-tier company.