Tyre specialist Hankook has announced the company’s 2022 Q3 financial results, with consolidated global sales of KRW 2,299.7bn (EUR 1,706.6m) and operating profit of KRW 192.4bn (EUR 142.7m).
Amid global economic uncertainties, political conflicts and continued COVID-19-related supply chain disruptions, Hankook Tire recorded positive financial performance during the third quarter of this year.
Company sales increased 25.7% YoY and 12.7% quarter-on-quarter, while operating income rose by 6.4% and 9.8% respectively, helped by a strong pricing strategy and the impact of foreign exchange rates.
Sales of premium tyres improved during the quarter, as did original equipment (OE) tyres in key markets including the U.S., Europe, China, and Korea. However, demand for replacement equipment (RE) tyres declined slightly compared to the same quarter last year.
One of Hankook Tire’s strongest segments, the large-diameter tyre segment, remained an important growth driver in the third quarter. Global sales of passenger car tyres 18 inches or higher accounted for 41.1% of the company’s total passenger car tyre sales, up 4.7 %age points (pp) compared to last year. Broken down by region, Hankook Tire recorded the largest growth in 18 inch and higher passenger car tyres in the Chinese market, rising 8.9pp to 52.3% year-on-year, followed by an increase of 4.4pp to 30.1% in Europe, up 4.2pp in Korea to 51.4%, and up 3.6pp to 51.2 % in the U.S. market.
Continuing its commitment to OE supply for premium electric vehicle (EV) models, Hankook recently launched its iON family of EV-specific tyres. Furthermore, from the 2022/23 season, Hankook will be the exclusive supplier and technical partner of the world’s first all-electric racing series, the ABB FIA Formula E World Championship.
By the end of this year, Hankook is aiming for double-digit growth compared to the previous year, even though the market uncertainties triggered by the economic downturn and surging energy prices are likely to persist. The company will focus on further increasing the share of high-inch tyres in total passenger tyre sales and becoming the leader in the electric vehicle tyre segment.