Korean tire maker logs W9.4tr in annual revenue on strong sales of high-value added products

Hankook Tire & Technology has turned in its best yearly earnings yet as the Korean tire maker successfully expanded sales of high-value added products, despite the global economic recession.
According to Hankook Tire on Tuesday, the company logged 9.41 trillion won ($6.45 billion) in revenue and 1.76 trillion won in operating profit last year, up 5.3 percent and 32.7 percent on year, respectively. Hankook Tire also noted that sales of 18-inch or larger passenger vehicle tires, which are high-value added products, led the profitability growth with an increase of 2.3 percentage points from 2023 to take up 46.5 percent of total sales.
Hankook Tire also strengthened supply contracts with premium models of global auto brands last year, including exclusive deals to provide tires for the Mercedes-AMG GT Coupe and BMW M5 models.
The Korean tire maker said it is supplying tires for about 280 models of 50 auto brands across the world as it continues to upgrade tire performance and quality to meet the needs of high-performance and premium automakers. The company also highlighted that its electric vehicle-dedicated brand iON has been leading the EV tire sector by continuously expanding its client portfolio, ranging from traditional automakers to newer EV powerhouses such as Tesla and BYD.
Hankook Tire aims to keep its operating profit rate at above 10 percent, while increasing the sales ratio of 18-inch or larger passenger vehicle tires to 50 percent or higher.
Meanwhile, Hankook & Company, the holding firm of Hankook Tire & Technology, turned in improved earnings on the same day; it reported 1.39 trillion won in revenue and 424.3 billion won in operating profit from 2024, up 27.3 percent and 65.4 percent on year, respectively.
By Kan Hyeong-woo (hwkan@heraldcorp.com)