Global OP Increases 15.5% YoY
Hankook Tire announced on Feb. 5 the company’s 2020 financial results with consolidated global sales of 6.454 trillion won and an operating profit of 628 billion won.
In the midst of global economic slowdown due to the COVID-19 pandemic, Hankook Tire sustained qualitative growth as operating profit increased 9.7 percent year on year despite a marginal decline in sales revenue compared to the previous year. In particular, high-inch tires -- 18 inches or higher -- drove the growth as they accounted for around 35 percent of the total sales of passenger car tires, up 3 percentage points YoY. Another key contributor was replacement tires that are profitable in regions such as Europe and North America. Stabilization of raw material costs has also contributed to higher operating profit.
The significance of Hankook’s financial performance in 2020 is complemented by the continued strategic application of the company’s global top-tier technology and excellence in product quality throughout the difficult year brought by the global pandemic. Even during the first half of 2020 when the business performance was expected to suffer significantly due to a sharp drop in global demand for tires, Hankook managed to post an operating surplus through joint efforts throughout the company.
From the second half of the year, the company began showing signs of quick recovery as sales increased in some major regions. In the fourth quarter, sales of replacement tires rose in regions such as Europe and North America. In China, sales of both original and replacement tires increased. Sales of high-inch tires increased to around 40 percent of total sales.
Furthermore, Hankook gained remarkable recognition for its technology excellence in 2020. In addition to receiving top ratings in several tire tests, including Germany and the United Kingdom, Hankook was ranked as the best-selling brand across three categories from all-season to summer and winter tires in the European e-commerce platform, Tyre24, where the result was based on a consumer preference survey.
For 2021, Hankook Tire has set the sales target at 7 trillion won. This year, Hankook plans to further solidify its brand value as a global top tier company by expanding sales of high-inch tires in major regions, supplying OE tires for premium cars, and by taking the lead in the electric vehicle market. The company also aims to continuously drive sustainable growth through optimizing distribution strategies for each region and diversifying the product portfolio based on its quality competitiveness.