Hankook Tire’s global operating profit dips 8.8% in 2011

Hankook Tire Co., Korea's largest tire maker, said Friday its operating profit in the global market dropped 8.8 percent last year from a year earlier due to rising raw material prices.

The operating profit of the tire maker's overseas operations came to 566.3 billion won ($493.1 million) in 2011, compared with 620.9 billion the previous year, the company said in a regulatory filing.

Global sales jumped 20.9 percent on-year to 6.5 trillion won last year, from 5.4 trillion won.

The company did not disclose its net profit for last year.

Hankook Tire said a price hike in raw materials affected its operating profit but brisk sales of its premium tires led sales growth, especially in large markets like Europe and the United States.

At home, domestic sales rose 17.9 percent to 3.96 trillion won last year, while Hankook's operating profit slumped 20.9 percent on-year to 379.6 billion won.

"Despite a global economic slump and rising international raw material prices, Hankook Tire continued its sales growth through aggressive global marketing and continuous research and development efforts on premium tires," Hankook Tire said in a separate statement. (Yonhap)