Hankook Tire "Korean Factory Posts Annual Loss Due to Strike"... Global Operating Profit Up 2%

Kumsan Plant of Hankook Tire

[Asia Economy Reporter Choi Dae-yeol] Hankook Tire & Technology announced on the 4th that its global consolidated operating profit last year was 641.8 billion KRW, an increase of 2.2% compared to the previous year. Sales reached 7.1422 trillion KRW, up about 10.7% during the same period.

The proportion of relatively expensive high-inch passenger car tires of 18 inches or more increased by 3.1 percentage points from the previous year to 37.7%. In the fourth quarter alone, the share of high-inch passenger tires reached 38.9%. The company explained, "Sales performed well in major regions during the first half, resulting in stable performance," adding, "Despite challenges such as vehicle semiconductor issues, rising raw material prices, and logistics disruptions, replacement tire sales increased and regional pricing strategies were effective."

The fourth quarter results were unfavorable. Operating profit was 87.9 billion KRW, down 61% compared to the same period last year and 51% compared to the previous third quarter. Although sales increased compared to the previous quarter and the same quarter last year, profitability deteriorated. The company stated, "Costs increased due to a total strike at Korean plants (Daejeon and Geumsan plants) in the fourth quarter, resulting in lost sales opportunities," and added, "Due to the strike, the Korean plants recorded an annual operating loss."

While receiving favorable evaluations from overseas specialized media, the company achieved results by supplying to high-end OEM automakers and electric vehicles. Last year, it supplied major models of Porsche and BMW, and also signed contracts to supply electric vehicle models of Audi and Volkswagen. From the fourth quarter of this year, it will exclusively supply electric vehicle tires for a Formula championship involving electric cars. The company set key management goals for this year, including double-digit sales growth and increasing the share of high-inch passenger tires to 42%.

This content was produced with the assistance of AI translation services.