Hankook Tire announced the company’s 2022 Q2 financial results with consolidated global sales of KRW 2,039.9 billion and operating profit of KRW 175.2 billion.
Hankook's Q2 Financial Results is Out Now
During the second quarter of 2022, Hankook Tire registered a growth of 12.9 per cent YoY and 13.9 per cent QoQ in aggregate sales despite external challenges that include global supply chain disruptions and rising raw material costs. Operating profit decreased 6.3 per cent compared to a year ago, but increased 39.0 per cent when compared to the previous quarter. The achievement was underpinned by an expanded portion of high-value-added products and effective pricing strategies.
Sales of high-inch passenger car tyres, 18 inches or higher, remained a key engine for growth. It accounted for 39.1 per cent of Hankook’s total sales of passenger car tyres, up 1.1 per cent from the last fiscal quarter. The Chinese market was the biggest contributor with its share of high-inch tyre sales for passenger cars having grown 11.5 per cent year-on-year to 51.8 per cent. The Korean market followed, seeing a YoY increase of 3.4 per cent to a record high of 50.5 per cent. The European market reported a 0.5 per cent increase YoY. Consolidated revenue also grew on the account of the North American market’s strong sales growth in both original and replacement tyres.
However, sales volume and operating profit in the second quarter posted a decline from the same period last year reflecting the market impact of the Russia-Ukraine conflict, lockdown in China, and historically high inflation rates. In addition to stabilised business performance, the second quarter included significant momentum for Hankook towards future leadership in the industry. In May, Hankook opened Asia's largest proving ground 'Hankook Technoring' taking another leap forward as a technology innovation leader. The test track provides rigorous testing conditions for Hankook's most advanced products, including tyres for electric vehicles (EVs) and supercars. It is expected to play a pivotal role in meeting the strict requirements of carmakers as well as in boosting the era of electric vehicles.
In the same month, in Europe, Hankook introduced its first family of tyres specially designed for electric vehicles. The iON (pronounced as /ai'on/) products, available in summer, winter and all-season treads, will also roll out in other markets within this year. During the second quarter, Hankook continued outfitting premium automobiles with original equipment tyres. Hankook started equipping Audi Q4 e-tron and Audi Q4 Sportback e-tron with its Ventus S1 evo 3 ev. Hankook's extensive OE installations at Audi’s electric vehicle models started with fitting Audi’s first all-electric sports car, the Audi e-tron GT, in June last year.
Hankook was also able to prevail against competitors, especially with the results of tyre tests by renowned automobile magazines. Hankook gained three awards at the 2022 Auto Express Product of the Year Awards hosted by UK’s leading car magazine Auto Express. Hankook Ventus S1 evo 3 was awarded with the title of “Summer Tyre Product of the Year 2022”. Hankook Kinergy 4S 2 won "Product of the Year", scoring highly in aquaplaning tests. Hankook Winter i*cept RS 2 achieved a solid "Commended" in the same test. Hankook Tire aims to achieve double-digit growth this year and increase its portion of high-inch tyres sales to 42.0 per cent among total sales of passenger car tyres. Hankook will also focus on gaining leadership in the electric vehicle tyre segment.