Hankook Tire announces 2022 Q1 financial results
- Sales reached KRW 1,790.6 billion, a 10.8% increase YoY with sales of high-inch tires driving growth
- Uncertain global business environment impacts operating profit, down 32.2% YoY at KRW 126.0 billion
- Hankook to gain leadership in EV market with its newly-launched first family of tires designed for EV, iON
Seoul, Korea, May 11, 2022 – Global leading tire company Hankook Tire announced the company’s 2022 Q1 financial results with consolidated global sales of KRW 1,790.6 billion and operating profit of KRW 126.0 billion.
With the challenges presented by the uncertain global business environment in the first quarter of 2022, the company saw a 32.2% decline in operating profit YoY. This decrease was largely due to the lingering effects of the ongoing global supply chain disruptions, rising raw material prices, the resurgence of COVID-19 and geopolitical issues.
However, The company’s sales continued to rise with an increase of 10.8% YoY through effective pricing and distribution strategies in major regions. In particular, sales of high-inch passenger car tires, 18 inches or higher, continued to be the driving engine for growth, accounting for 39.0% of the company’s entire sales, up 1.3%p YoY. In the regions, Korea, China, and Europe played a key role in the sales growth. The share of high-inch tire sales for passenger cars in the Chinese market was 49.1%, up 8.6%p YoY, while the Korean and European markets increased 2.3%p and 0.9%p YoY respectively. Meanwhile, the U.S. market showed steady recovery in the first quarter with surging sales for replacement tires exceeding that of market demand.
In the meantime, Hankook’s competitiveness in product quality continued to be recognized by renowned automobile magazines in the summer tire performance test category. Auto Bild, Europe’s most prestigious automobile magazine, rated Hankook Tire’s all-new Ventus Prime 4 with the highest rate “exemplary”. The 18-inch Ventus S1 evo 3 SUV was also crowned test winner and rated “exemplary” in Auto Bild Allrad magazine, Europe's largest all-terrain vehicle magazine.
Hankook continued to expand its original equipment (OE) portfolio for flagship models and electric vehicles from premium carmakers. During the first half this year, the company started supplying OE tires to BMW’s first-ever four-door all-electric Gran Coupe, BMW i4, as well as to Mercedes Benz’s luxurious S-class sedan.
Furthermore, Hankook has introduced its first family of tires specially designed for high performance, premium electric vehicles. The iON (pronounced as /ai'on/) products will be available in three designs: summer, winter and all-season. The iON will roll out starting from May in Europe first, and then be expanded to other markets globally in August.
Hankook Tire aims to achieve double-digit growth this year and increase its portion of high-inch tires sales to 42% among total sales of passenger car tires. Hankook will sharpen its focus on gaining leadership in the electric vehicle tire segment, strengthening partnership with leading carmakers, and expanding regional distribution channels and sales.
Q1 2022 Consolidated Financial Result
|(Unit: Billion KRW)||Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|(Unit: Million USD)||Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|(Unit: Million EUR)||Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|USD / KRW||1,114.05||1,183.17||1,204.95|
|EUR / KRW||1,342.62||1,352.51||1,352.44|
(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)