Hankook delivers 42% increase in earnings

­­Seoul - Hankook has posted a 41.6% year-on-year operating profit to €173 million on second quarter sales of around €1,581 million, 11.0% above the same period of last year. 

Amid a challenging business environment, Hankook linked the increases to "robust sales" of its electric vehicle (EV) tires and high-value products. 

As vehicle production increased due to stable supply of automotive semiconductors, the supply of OE tires continued to expand globally, the Korean group added.

And, said Hankook, despite reduced demand due to high distributor inventories in major markets, sales of replacement tires exceeded market demand.

Stabilisation of raw material costs and freight rates provided a further boost to profitability, the tire maker's 28 July statement added.  

The proportion of sales attributable to 18-inch and higher passenger car tires reached 43.6%, up by 4.5 percentage points (pp) year-on-year.

"Sales of replacement tires and OE tires increased in the major markets, such as Europe, North America, and China, driving global growth," continued Hankook.

Despite a challenging outlook for the second half of 2023, Hankook said it aims to increase sales by over 5% year-on-year.

The ambitious target includes raising the proportion of sales attributable to 18-inch and higher passenger car tyres to 45%.

Hankook said it will also expand its presence in the EV market, towards "reaching 20% of OE tire supply for EV models among total supply of OE tires for passenger cars and light trucks."