Press Release

  • Corporate

Hankook Tire Reports Global Financial Results for 2017

In comparison to 2016, the company’s sales increased by 2.9% in 2017. This result was driven by an expansion of the premium OE segment and a sales growth of larger size tyres starting from 17-inch especially in Europe and the U.S.

Seoul, Korea / Neu-Isenburg, Germany, February 9, 2018 ‒ 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.

 

 

Q4 2017 Consolidated Financial Result

(Unit: Billion KRW)

Q4 FY 2016

Q3 FY 2017

Q4 FY 2017

Sales

1,610.6

1,824.5

1,682.8

Operating Profit

239.2

217.1

139.7

 

(Unit: Million USD)

Q4 FY 2016

Q3 FY 2017

Q4 FY 2017

Sales

1,391.6

1611.41

1521.90

Operating Profit

206.6

191.7

126.3

 

(Unit: Million EUR)

Q4 FY 2016

Q3 FY 2017

Q4 FY 2017

Sales

1,291.5

1371.60

1292.66

Operating Profit

191.8

163.2

107.3

 

*Exchange Rates:

 

Q4 FY 2016

Q3 FY 2017

Q4 FY 2017

USD / KRW

1,157.37

1,132.24

1,105.72

EUR / KRW

1,247.02

1,330.2

1,301.81

 

2017 Consolidated Financial Result

(Unit: Billion KRW)

FY 2016

FY 2017

Sales

6,621.8

6,813.3

Operating Profit

1,103.2

793.7

 

(Unit: Million USD)

FY 2016

FY 2017

Sales

5,706

6,024.9

Operating Profit

950.6

701.8

 

(Unit: Million EUR)

FY 2016

FY 2017

Sales

5,160

5,337.9

Operating Profit

859.7

621.8

 

*Exchange Rates:

 

FY 2016

FY 2017

USD / KRW

1,160.50

1,130.84

EUR / KRW

1,283.30

1,276.39

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

Hankook Tire manufactures globally 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 eight 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 around 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 Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Russia, Spain, Sweden, Turkey, UK and Ukraine. Hankook products are sold directly through regional distributors in other local markets. Hankook Tire employs approximately 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. Hankook Tire has been represented in the renowned Dow Jones Sustainability Index World (DJSI World) since 2016.

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


Hankook Tire Europe GmbH | Corporate Communications Europe/CIS | Siemensstr. 14, 63263 Neu-Isenburg | Germany

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Contacts

Felix Kinzer

Fon: +49 (0) 6102 8149-170

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Anna Pasternak

Fon: +49 (0) 6102 8149-173

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Sabine Riedel

Fon: +49 (0) 6102 8149-174

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Larissa Büsch

Fon: +49 (0) 6102 8149-171

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Yara Willems

Fon: +49 (0) 6102 8149-172

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Fabian Kühn

Fon: +49 (0) 6102 8149-175

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