Hankook Tire Posts Q3 Operating Profit of KRW 598.8 Billion... Tire Division Hits Record Revenue

Strengthening Global Supply of Original Equipment Tires

Hankook Tire & Technology said on the 6th that its consolidated operating profit for the third quarter rose 2.2% year on year to KRW 598.8 billion.

Revenue edged up 1.0% from a year earlier to KRW 5.465 trillion.

Revenue from the tire division increased 3.7% year on year to KRW 2.8083 trillion, reaching a quarterly record high as higher sales volumes and favorable exchange-rate effects contributed to growth. Operating profit totaled KRW 505.9 billion, down 2.6% from a year earlier.

Costs rose amid higher raw material and logistics expenses stemming from geopolitical instability in the Middle East, but increased sales of high-value-added products partially offset the burden.

Hanon Systems recorded third-quarter revenue of KRW 2.6569 trillion, down 1.8% year on year, and operating profit of KRW 120.6 billion, up 26.6%.

In its tire division, Hankook Tire is meeting diverse consumer demand with tires for vehicles with wheels of 18 inches or larger, winter tires, and tires designed specifically for electric vehicles. On a cumulative basis for the first three quarters, tires for vehicles with wheels of 18 inches or larger accounted for 49.4% of passenger car and light truck tire revenue, while tires designed specifically for electric vehicles made up 32.3% of revenue from original equipment tires for passenger cars and light trucks.

Hankook Tire plans to sustain growth by expanding sales of high-value-added products, including premium tires and tires designed specifically for electric vehicles, and strengthening its supply of original equipment tires globally.

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