Hankook Tire Co. Ltd. posted net sales of $6.6 trillion won in fiscal 2014, which is 5.5% below 2013’s sales of $7.1 trillion won.
Based on the average exchange rate for 2014, Hankook recorded sales of more than $6.3 billion. That is nearly $114 million less than the previous year (based on the average exchange rate for 2013).
The company did not release net income for the year.
The company says it secured an overall operating profit that was on par with its 2013 results and a profit-to-sales ratio of 15.4%.
Positive sales growth in the ultra high performance (UHP) tire segment and the premium original equipment (OE) business expansion contributed to the company’s financial results, while global consolidated revenue saw a marginal decline from the previous year.
Revenue from UHP tire sales finished with an overall 6.8% increase year over year, accounting for approximately 30% of Hankook entire global sales. The company says its lines of run-flat tires and racing tires also exhibited strong sales in 2014 with a 10.8% increase year over year.
The company says factors contributing to OE business growth include securing OE run-flat tire contracts for premium German auto brands and expansion into various market segments including sports cars, luxury SUVs, and commercial vehicles.
In 2014, the company broke ground on an R&D center in Korea called Hankook Technodome and a manufacturing plant in Clarksville, Tenn. The company also launched an entry level glbabl brand called Laufenn to aid in its “bid to become the global leader in top-tier tire production and sales.”
The company will continue to act as leaders in the UHP tire segment, according to Hankook Vice Chairman and CEO Seung Hwa Suh. “By targeting North America and the emerging markets, Hankook Tire’s future-oriented growth strategy will place us on track to become the world’s leading tire company.”
Prior to releasing its financials, Hankook announced two executive appointments.
Mr. Gangseung Lee assumed the role as vice president of marketing and sales at the company’s European Headquarters effective Jan. 1, 2015. Lee previously served as managing director of the company’s subsidiary in the United Kingdom, the 2nd biggest market for Hankook Tire in Europe.
The company said Lee was a driving force behind brand growth in the UK and played an instrumental role both in the continued increase in market share and improved service and supply. Mr. Lee has also been at the forefront of the development of the Hankook Masters Program in the UK, which is designed to identify premium independent retail depots across the UK in prime locations to offer a consistent and highly distinctive brand experience. He succeeds Hee-Se Ahn, who will serve as the Chief Operating Officer at Hankook Tire’s American Headquarters.
Jong Jin Park will replace Lee as UK managing director. With over 10 years of experience within the tire industry and with expertise in both sales and marketing Mr. Park shall continue to successfully expand Hankook’s presence in the UK market.
Park began his career with Hankook at the Global Headquarters in Korea in 2004 working within the overseas sales strategy team moving rapidly into a management role. In 2006 Mr. Park was promoted to work within the global marketing function and in 2008 he relocated to assume his role within the marketing team in Hankook’s American Headquarters.
