Hankook Q1 earnings, sales decline

Seoul – Hankook Tire Co. Ltd. reported a 9.8-percent drop in pre-tax operating profit for the quarter ended March 31 on 1.7% lower sales.

Hankook's first quarter EBITDA fell to $306 million on sales of $1.5 billion, dropping the operating ratio two points to 20.4%, the company reported. Net income was not published.

In a brief note accompanying the release of the results, Hankook noted that replacement sales fell in its home market and in North America, reflecting "weak" market conditions. Replacement sales were stable in China and Europe.

OE sales in North America, by contrast, were characterized as "strong," based on increased sales with major OE partners.

Regionally, sales revenue fell in all markets except Europe, where revenue jumped 14% on the strength of higher sales of larger rim-diameter tires, Hankook said.

Revenue in North America — which represents about 28 percent of Hankook's global sales — slid 1.3% to $416 million.