Press Release

  • Corporate

Hankook Tire Reports Global Financial Results for the Fourth Quarter of 2016

- Hankook announced global sales revenues of KRW 1.61 trillion and an operating profit of KRW 239.8 billion in the fourth quarter of 2016

- Operating profit of 2016 grew 24.7% YoY, driven by successful premium OE supply and increased Ultra High Performance Tyre (UHPT) sales in major markets, especially in Europe and North America.

 

Seoul, Korea / Neu-Isenburg, Germany, February 7, 2017 – Hankook Tire announced its global financial results for the fourth quarter of 2016 with consolidated sales of KRW 1.61 trillion (1.295 billion Euro) and an operating profit of KRW 239.8 billion (192.2 million Euro). The company reported total sales revenues of KRW 6.62 trillion (5.163 billion Euro) and an operating profit of KRW 1.10 trillion (860.1 million Euro) for the total fiscal year 2016.

Hankook Tire’s achievement is attributed to continuous OE supply for models of global premium automobile brands based on Hankook Tire’s global top tier technology and product quality. An increased sales volume in the Replacement Tyre (RE) segment, especially in the Ultra High Performance Tyre (UHPT) segment including sales of winter tyres in Europe added up to a consistent upward trend. Furthermore, Hankook Tire managed to secure balanced growth through also increasing OE sales in the Chinese market.

Especially, revenue from UHPT sales accounted for 33.5% of the total sales in the fourth quarter, marking a 0.7% increase in comparison to the same period of last year. With regard to 2016’s total sales, the sales revenue of UHPT comes to 34.5%.

With this year’s goal of reaching global sales revenues of KRW 7.22 trillion, Hankook Tire plans to focus on expanding sales in the UHPT segment as well as in the OE segment for new premium car models in order to strengthen its brand value. Moreover, the company will further enhance its presence in the global market through diversifying the OE portfolio and optimizing each regional distribution strategy.

As a premium brand that provides the opportunity of high-technology experience based on an innovative corporate culture, Hankook Tire will also continue to accelerate its business growth and to strengthen its leadership in technology through a working environment that fosters innovation power and creativity.

 

Q4 2016 Consolidated Financial Result

(Unit: Billion KRW)

Q4 FY 2015

Q3 FY 2016

Q4 FY 2016

Sales

1,596.5

1,657.6

1,615.0

Operating Profit

239.1

302.6

239.8

 

(Unit: Million USD)

Q4 FY 2015

Q3 FY 2016

Q4 FY 2016

Sales

1,379

1,478.1

1,395.4

Operating Profit

206.5

269.8

207.1

 

 

 

 

(Unit: Million EUR)

Q4 FY 2015

Q3 FY 2016

Q4 FY 2016

Sales

1,259.5

1,324.9

1,295.0

Operating Profit

188.6

241.8

192.2

 

*Exchange Rates:

 

Q4 FY 2015

Q3 FY 2016

Q4 FY 2016

USD / KRW

1,157.69

1,121.37

1,157.37

EUR / KRW

1,267.57

1,251.04

1,247.02

 

2016 Consolidated Financial Result

(Unit: Billion KRW)

FY 2015

FY 2016

Sales

6,428.2

6,626.1

Operating Profit

885.0

1,103.8

 

(Unit: Million USD)

FY 2015

FY 2016

Sales

5,681.1

5,709.6

Operating Profit

782.1.

951.1

 

(Unit: Million EUR)

FY 2015

FY 2016

Sales

5,121.4

5,163.3

Operating Profit

705.0

860.1

 

*Exchange Rates:

 

FY 2015

FY 2016

USD / KRW

1,131.49

1,160.50

EUR / KRW

1,255.16

1,283.30

(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)

Hankook Tire is one of the global top 5 companies in the mass production of tyres and manufactures innovative, award winning radial tyres of proven superior quality for passenger cars, light trucks, SUVs, RVs, trucks, and buses as well as motorsports (circuit racing/rallies).

Aspiring to bring consumers the utmost excellence in product quality, technological excellence and driving satisfaction, Hankook Tire continuously invests in research and development maintaining five R&D centres and seven production facilities around the world. Bespoke tyre solutions for the European markets as well as European Original Equipment according to the requirements of leading premium car manufacturers, are developed in the company’s regional Technical Centre in Hanover/Germany. Production for the European region is taking place in the state-of-the-art manufacturing site in Rácalmás/Hungary which was inaugurated in June 2007 and is continuously being expanded. Currently more than 3,000 employees produce up to 19 million tyres a year for passenger cars, SUVs and light trucks.

Hankook Tire’s European headquarters are located in Neu-Isenburg near Frankfurt am Main in Germany. The manufacturer operates further branches in Germany, UK, France, Italy, Spain, the Netherlands, Hungary, Czech Republic, Russia, Turkey, Sweden and Poland. Hankook products are sold directly through regional distributors in other local markets. Hankook Tire employs more than 22,000 people worldwide and are selling their products in over 180 countries. Internationally leading car manufacturers rely on tyres made by Hankook for their original equipment. Approximately 30 percent of the company's global sales are generated within the European and CIS-Region.

For more information please visit www.hankooktire-mediacenter.com or www.hankooktire.com


Hankook Tire Europe GmbH | Corporate Communications Europe/CIS | Siemensstr. 5a, 63263 Neu-Isenburg | Germany

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