Hankook Tire Reports Q2 Sales of 2.03 Trillion KRW and Operating Profit of 175.2 Billion KRW

12.9% Increase and 6.3% Decrease Compared to the Same Period Last Year

[Asia Economy Reporter Kiho Sung] Hankook Tire & Technology (Hankook Tire) recorded sales of 2.0399 trillion KRW and operating profit of 175.2 billion KRW in the global consolidated management performance for the second quarter of this year.

Hankook Tire announced this on the 2nd. Sales increased by 12.9% compared to the same period last year and by 13.9% compared to the previous quarter. Operating profit decreased by 6.3% compared to the same period last year but rose by 39% compared to the previous quarter. Hankook Tire stated that despite the difficult management environment due to rising raw material prices and global logistics disruptions, sales increased through expanding the proportion of high value-added products and effective sales price management.

The sales proportion of high-inch passenger car tires of 18 inches or more accounted for about 39.1%, rising by 1.1 percentage points compared to the same period last year, continuing qualitative growth. In the Chinese market, the sales proportion of high-inch passenger car tires of 18 inches or more was 51.8%, up 11.5 percentage points from the same period last year; in the Korean market, it was 50.5%, up 3.4 percentage points; and the European market also increased by 0.5 percentage points compared to the same period last year. Additionally, in the North American market, sales increased through stable sales of both new car tires and replacement tires.

However, due to the Russia-Ukraine conflict, lockdowns in China, and inflation, sales volume and operating profit decreased compared to the same period last year. Also, the Korean factories (Daejeon and Geumsan plants) have continued cumulative losses until the first half of this year after recording annual losses last year, making it necessary to implement measures to recover profitability.

Hankook Tire plans to achieve double-digit growth in sales compared to 2022, reach a 42% sales proportion of high-inch passenger car tires of 18 inches or more, and aim to lead the electric vehicle market despite the uncertain global tire market in the second half of the year.