ausauto News Article

Record profit in face of global recession

Hankook Tire seems have bucked the global financial crises to record an 18% lift in sales leading to a five-fold increase in profit.

The company is claiming that key drivers for helping it buck the downward trend in the tyre industry were the establishment of solid footholds in diverse regions and embracing the economic downturn as an opportunity to capture market share and actively responding to customer demand.

Maintaining its position as a market leader in China, the company recorded a 54% increase in local sales to carmakers due to the drastic expansion of the Chinese automobile market.

A strong presence in the Korean replacement market resulted in substantial growth, the Middle East market increased by 25% and the 'Made-in-Europe' products were a success in that part of the world.

Positive results in Ultra High Performance (UHP) Tires, played a significant role in profitability with a 9.6% year-over-year increase that included a big rise in OEM orders around the world.

Having a positive outlook for 2010, Hankook Tire is aggressively targeting for global sales of KRW 5.1 trillion for the first time this year. Also, Hankook Tire aims to position itself as a caring company committed to eco-friendly products and technology as well as customer safety through ongoing R&D investment.

Vice chairman & CEO Seung Hwa Suh (pictured) said that he was proud of 'our astounding achievements in 2009' which he claimed were based on market diversification strategies and priority on attaining premium quality.

"In 2010, we have set another aggressive sales target at KRW 5.1 trillion and will continue to prove that we are making sustainable growth worldwide.

"We also aim to expand the global customers' trust through ongoing efforts for customer safety and the environment as a leading global company."