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Hankook Tire Announces Financial Results for the Second Quarter of 2020

Hankook has announced the company’s financial result for 2020 Q2 with consolidated global sales of KRW 1.37 trillion (approx. 1.017 billion Euro) and an operating profit of KRW 70.1 billion (approx. 52.1 million Euro). 

Hankook’s 2020 Q2 Financial Results 

For the second quarter of 2020 Hankook Tire reports sales of KRW 1.37 trillion and an operating profit of KRW 70.1 billion. High-inch tyres, starting at 18-inch, account for 32,69% of total sales with passenger car tyres. This marks a 1,1% increase compared to the same period last year. Furthermore, the labor union and management joint forces to overcome the challenging market environment.  

Despite the global economic downturn caused by the COVID 19 pandemic, Hankook again reported an operating profit after the first quarter, strengthening its position in the global market for premium tyres thanks to its advanced technology and competitiveness. Sales of high inch tyres equal to or above 18 inches accounted for 32.6% of the sales of tyres for passenger cars, which is an increase of 1.1 % compared to the same period last year. Growth in sales of these high inch tyres in key markets such as South Korea and China remained steady. 

Hankook continues to expand its standing in the electric vehicles sector. The company was recently selected as Gen3 tyre partner for the ABB Formula E World Championship, which is organized by the FIA (Federation Internationale de l’Automobile). In the supplier sector, Hankook is also expanding its original equipment commitment to premium car makers and is now supplying its specially developed Ventus S1 evo 3 ev (electric vehicle) tyres to the new Porsche Taycan, the first fully electric sports car from Porsche AG. 

The company is also laying down the building blocks for overcoming the COVID 19 crisis by joining forces throughout the company. To this end, the trade unions have delegated all responsibilities for wage adjustments to the company and since May, the top managers have been voluntarily repaying 20% of their salaries until the normalization of operations.  

Moving forward, Hankook plans to further solidify its standing as a premium brand by expanding the portfolio of high inch tyres in major markets, supplying OE tyres for premium cars and strengthening product competitiveness. By optimizing the sales strategies for each region, Hankook aims to improve sales to help the company overcome the challenging market environment. Measures will include a diversified product portfolio and a continuous expansion of sales channels based on global production and distribution networks. 

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