For the third quarter of 2020 Hankook Tire reports an increase of global sales and operating profit by 2.8% and 24.6% respectively year-on-year, and by 38.3% and 220.5% compared to the previous quarter. This recovery is mainly attributed to increased sales of replacement tyres in major regions such as Europe, North America, and China. It was also driven by increased sales of OE tyres as well as high-inch tyres of 18 inches or above in China. The company’s Laufenn brand product portfolio is also a key contributor to driving demand from customers seeking both quality and competitive price.
Hankook Releases 2020 Q3 Financial Results
Tyre maker Hankook announced today the company’s financial result for 2020 Q3 with consolidated global sales of KRW 1.88 trillion (approx. 1,358.8 billion Euro) and an operating profit of KRW 224,6 billion (approx. 161.7 million Euro).
Driven by increased sales of replacement tyres in Europe, North America, and China, Hankook’s sales and operating profit increased by 2.8% and 24.6% respectively compared to the same period last year, and by 38.3% and 220.5% compared to the previous quarter. In China, where sales increased for both OE and replacement tyres, sales of high-inch tyres equal to or above 18 inches accounted for 33.6% of the sales of tyres for passenger cars, which is an increase of 8.9 % compared to the same period last year, leading the company’s growth.
The recent recovery is particularly significant in the replacement sector. COVID-19 has influenced the global consumption pattern, which includes a further increase in the number of customers seeking value for products, and this is attributed to Hankook's overall sales growth. Furthermore, Hankook has recently received top ratings in several independent tyre tests, including in Germany and the UK, being recognised for its technical excellence.
Currently, Hankook is establishing a two-track brand portfolio, consisting of the premium brand "Hankook", which represents the highest level of tyre performance, as well as the strategic brand "Laufenn", which targets price-sensitive consumers. Performances of these two brands are creating synergy to expand the customer base and increase sales across the entire product range. Moreover, Hankook plans to strengthen its standing as a premium brand by expanding its partnership with global carmakers, including the OE supply of Ventus S1 evo 3 ev to Porsche's first high-performance electric sports car, the Taycan.
Moving forward, the company plans to further solidify its reputation for excellence in quality in response to a challenging market environment and to further improve its performance by expanding sales of high-inch tyres, optimising distribution strategies for each region, and diversifying the product portfolio.