Hankook Tire announces Q3 financial results
- Q3 performance includes a 1.8% increase in sales and a 106% increase in operating profits YoY
- Continue to supply OET to high-performance vehicles while improving sales of electric vehicle tires
- Benefitted from favorable external conditions such as stabilization of raw materials prices and maritime freight costs
Seoul, Korea, November 1, 2023 – Global leading tire company Hankook Tire & Technology (Hankook Tire) announced sales of KRW 2,340.0 billion and an operating profit of KRW 396.3 billion based on global consolidated financial results for the third quarter of 2023. Both sales and operating profit increased by 1.8% and 106% respectively year-over-year (YoY).
In the third quarter, Hyunbum Cho, the Chairman & CEO of Hankook & Company focused on preemptive investments to supply new tires for electric vehicles (EV), and Original Equipment Tires (OET) for supercar brands, to dominate the future mobility industry. In particular, the company saw visible results in the research & development (R&D) aimed at meeting the tire performance requirements for supercars and high-performance electric vehicles of global premium automobile brands.
In addition, Hankook Tire has been continuously expanding its sales region and product lineups after the first global launch of the world’s first full-line EV tire brand ‘iON’ in May 2022. Simultaneously, it also managed to actively engage as the exclusive supplier and official partner of the world’s best EV racing competition ‘ABB FIA Formula E World Championship.’ This was because Hankook Tire, leading the global EV tire market, has successfully proved its long-term established technology in electric vehicles even before its commercialization.
Hankook Tire is firmly establishing its position as a leading global tire company by supplying approximately 250 original equipment to around 40 global automobile brands, including Porsche, Mercedes-Benz, BMW, Audi, and Tesla. This underscores its status as a top-tier premium tire brand in the global market.
Furthermore, the company has maintained strong performance amid a challenging business landscape, attributed to factors such as stabilized prices of raw materials including synthetic rubber and carbon black as well as the reduction in maritime freight costs. Its strategic pricing and effective management of state-of-the-art products, including high-inch, high-performance, and electric vehicle tires, have been instrumental in creating synergistic effects leading to commendable results.
These effects have extended into Q3, with tires designed for passenger cars and light trucks (PCLT) with a size of 18 inches or larger accounting for 43.4% of total sales, showing a growth rate of 2.3%p YoY. Among the major regions, China had the highest proportion of sales for high-inch passenger car tires at 57.3%, followed by Korea at 53.6%, North America at 51.4% and Europe at 34.3%
Q3 2023 Consolidated Financial Result
|(Unit: Billion KRW)||Q3 FY 2022||Q2 FY 2023||Q3 FY 2023|
|(Unit: Million USD)||Q3 FY 2022||Q2 FY 2023||Q3 FY 2023|
|(Unit: Million EUR)||Q3 FY 2022||Q2 FY 2023||Q3 FY 2023|
|Q3 FY 2022||Q2 FY 2023||Q3 FY 2023|
|USD / KRW||1,337.98||1,314.68||1,310.95|
|EUR / KRW||1,347.50||1,431.77||1,428.19|
(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)