Hankook posts jump in second quarter earnings

Seoul  – Hankook has posted a 69.2% year-on-year increase in operating profit to KRW420 billion (€285 million) on second quarter sales 2.4% higher at KRW2,317.8 billion (€1,570 million).

The impressive results were achieved “despite prolonged high inflation and elevated interest rates, which dampened consumer sentiment throughout the global economy,” Hankook reported 8 Aug.

Gains were linked to initiatives around the group’s premium-brand strategy, including its R&D and electric vehicle (EV) tire progamme, as well as partnerships with ‘high-performance’ automotive manufacturers.

Hankook added that its region-specific sales strategy based on expanded sales channels and an enhanced distribution infrastructure [helped to leverage] its technological expertise and kept its premium products competitive.”

In the second quarter, 18”and larger tires comprised 46.3% of all passenger car and light truck (PCLT) tire sales, representing a year-on-year increase of 2.8 percentage points (pp).

High-inch car tires accounted for 63% of total sales in the Chinese market – the highest proportion of any region – and 55.3% in South Korea, followed by 54.6% in North America and 37.8% in Europe.