Seoul – Despite higher sales, Hankook Tire has posted a significant year-on-year decline in operating profit for the first quarter of 2019.
Operating profit fell 24.1% to KRW140.1 billion (€109.6 million) for the three months to end of March, while sales grew 2.0% to KRW1.64 trillion, Hankook reported 28 April.
The Korean tire maker did not elaborate on the reasons behind the earnings decline but said sales had been negatively impacted by a slowdown in the automotive industry.
This was, however, offset by a 3.3% increase in sales of large-rim premium tires (18 inches and above) and OE supply to pick-up trucks and SUVs, particularly in North America.
Hankook said it now aims to increase sales of large-rim tires in major markets, target OE supply for premium cars and improve competitiveness.
The company also plans to diversify its OE portfolio to establish a “stable growth structure” and optimise distribution strategies for each region.