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Hankook Tire announces 2021 Q1 financial results
- Global business shows sign of stable recovery, with sales reaching KRW 1.61 trillion and operating profit at KRW 186 billion, a 12.6% and 75.5% increase YoY respectively
- Sales of high-inch tires (over 18 inches or higher) accounts for 38% of all tires sold, up 4%p YoY, indicating continued qualitative growth
- Continues to expand partnerships with premium car makers while solidifying leadership in the electric vehicle tire sector
Seoul, Korea, May 3, 2021 – Global leading tire company Hankook Tire announced the company’s 2021 Q1 financial results with consolidated global sales rising 12.6% YoY to KRW 1.61 trillion and operating profit of KRW 186 billion, an increase of 75.5% YoY.
As the global market recovers from the COVID-19 shock, Hankook’s business is steadily recovering since the second half of 2020. The company is seeing its sales stabilize in several major markets that include Europe, North America, and China, particularly in the high-inch tire sector that accounts for tires 18 inches or higher. Global sales of high-inch tires accounted for 38% of entire tire sales, which is now up 4%p compared to the same period last year.
Sales of replacement tires also increased as the market demand in the U.S. and Europe continued its recovery. China likewise showed a rise in the demand of replacement tires along with healthy sales of original equipment (OE) tires, indicating an upturn in the production of automotive vehicles. High-inch tires in China increased 13%p to 40% YoY.
Despite the slowdown last year, Hankook continues to remain highly aggressive in its commitment to strengthen the reputation as a premium brand. The company is also continuing to secure partnerships with global carmakers to expand the number of OE contracts, as demonstrated by the recent announcement to supply its ultra high performance tire, the Ventus S1 Evo3 for the Porsche 718 Boster and the Porsche Cayman. Hankook is also actively expanding partnerships for EV fitment, as demonstrated by the agreement to supply tires factory-installed on Porsche’s first high-performance electric sports car, Taycan, as well as the NIO ES6 and EC6, flagship models made by China’s fast-growing electric vehicle brand.
In 2021, Hankook seeks to maintain the growth momentum of its high-inch tire sales in major markets and add OE partnerships with an already robust portfolio. Growth in the electric vehicle tire sector will also be one of the primary concentrations, as the company continues to pursue greatness in the EV tire innovation as well as future technologies and solutions that transform consumers’ imaginations into reality. In the midst of this growth, Hankook will continue to pace forward in pursuit to be the technology leader that bestows positive influence in the community and the environment respective of a premium brand.
Q1 2021 Consolidated Financial Results
|(Unit: Billion KRW)||Q1 FY 2020||Q4 FY 2020||Q1 FY 2021|
|(Unit: Million USD)||Q1 FY 2020||Q4 FY 2020||Q1 FY 2021|
|(Unit: Million EUR)||Q1 FY 2020||Q4 FY 2020||Q1 FY 2021|
|Q1 FY 2020||Q4 FY 2020||Q1 FY 2021|
|USD / KRW||1,193.60||1,118.53||1,113.62|
|EUR / KRW||1,316.58||1,333.42||1,342.55|