Seoul – Hankook Tire has reported significant declines in sales and operating profit for the second quarter of 2020 amid the global economic downturn caused by Covid-19 pandemic.
Operating profit for the three months to end of June fell 33.6% year-on-year to KRW70.1 billion (€52.1 million) on 21% lower sales of KRW1.37 trillion, the Korean tire maker reported 3 Aug.
Hankook did not give further breakdown of figures or market analysis but said it strengthened its position in the premium tires market through “advanced technology and competitiveness.”
Sales of high inch tires accounted for 32.6% of the total sales of tires for passenger cars, up 1.1 % compared to the same period last year.
Growth in sales of higher rim size tires “remained steady” in key markets such as South Korea and China, the company added.
In addition, Hankook said it expanded its position in the electric vehicles sector with a recent supply contract with ABB Formula E World Championship as well as an OE agreement for the new Porsche Taycan.
To curb the impact of the Covid pandemic, the company said it has reached an agreement with unions to adjust wages while top managers are voluntarily repaying 20% of their salaries until operations return to normal.
Moving forward, Hankook said it planned to expand sales of high-rim tires in major markets and increase OE supply in a bid to improve “its standing as a premium brand.”