Hankook Tire 2Q Operating Profit 248.2 Billion KRW... Up 31.6% YoY

Sales Revenue of 2.2634 Trillion KRW

Hankook Tire & Technology announced on the 28th that it recorded sales of 2.2634 trillion KRW and an operating profit of 248.2 billion KRW in the second quarter. These figures represent increases of 11% and 41.6%, respectively, compared to the same period last year.

Exterior of Hankook Tire & Technology Headquarters
Photo by Hankook Tire & Technology

Despite a challenging business environment due to the economic downturn, the company explained that its strong performance was driven by high-level technology and a premium brand strategy, resulting in robust sales of electric vehicle-exclusive tires and high value-added products.

With the stabilization of vehicle semiconductor supply, the expansion of new car tire supply continued in response to increased new car demand. Despite demand contraction caused by increased distribution inventory in key markets, replacement tire sales exceeded market demand, contributing to strong results. Stabilization of raw material prices and freight costs also positively impacted profitability.

The sales proportion of high value-added tires for passenger cars 18 inches and above rose to 43.6%, up 4.5 percentage points from the same period last year. In Europe, North America, and China, sales of both new car tires and replacement tires increased. In Korea, the company launched the high-performance versions Evo and Evo SUV of iON, the world’s first full-lineup electric vehicle-exclusive tire brand, in the second quarter.

However, the Korean plants (Daejeon and Geumsan plants) turned to a loss in the second quarter due to factory fires and strikes. The company explained that the Daejeon plant incurred an operating loss of approximately 40 billion KRW in the first half due to the union strike and fire impact.

Hankook Tire set this year’s goals as ▲achieving a sales growth rate of more than 5% compared to the previous year ▲reaching a 45% sales proportion of passenger car tires 18 inches and above ▲and achieving a 20% supply ratio of electric vehicle models in new car tire supply for passenger cars and light trucks.

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