Hankook reports double-digit increase in earnings

Seoul, South Korea – Hankook Tire has reported 24.6% and 2.8% increases in operating income and sales for the quarter ended 30 Sept, due in large part to gains in replacement market sales in Europe, North America and China.

The Seoul-based tire maker posted operating income of €161.7 million on sales of €1,358 million, yielding an operating ratio of 11.9%, up two full points from a year ago.

Hankook also attributed some of the revenue gain to rising sales of its Laufenn associate brand, owing to growing demand from customers seeking quality and competitive prices. 

Laufenn-brand sales were up 57% in North America and 13% in Europe for the nine months ended 30 Sept, Hankook said.

Hankook noted its third quarter sales were 38% ahead of the second quarter, reflecting a rebound in business from periods earlier in the year impacted by the Covid-19-pandemic.

In China, where revenue increased for both OE and replacement tires, sales of larger rim-diameter tires (18 inches and larger) for one-third of the sales of the firm's passenger tire business, up roughly 9 percentage points from the same period last year.

Hankook also pointed to several recent independent tire tests in Europe, where it received high marks, for rising brand awareness, as well as to new OE fitments on cutting-edge vehicles like the electric-powered Porsche Taycan.

For the nine-month period, Hankook's operating income was down 6.1% to $333.4 million (€285 million) on 10.1% lower sales of $4.9 billion.