Hankook Tire announces 2022 Q3 financial results

- Global sales reached KRW 2,299.7 billion, a 25.7% increase YoY while operating profit rose 6.4% YoY to KRW 192.4 billion
- Sales in original equipment and high-inch passenger car tire sectors contributed to strong financial performance while replacement tire sector saw slight downturn in demand
- Company continues to focus on strengthening leadership in EV and sustainable mobility with FIA Formula E partnership and expansion of EV tire lineup

Seoul, Korea, November 2, 2022 - Global leading tire company Hankook Tire & Technology (Hankook Tire) announced the company’s 2022 Q3 financial results with consolidated global sales of KRW 2,299.7 billion and operating profit of KRW 192.4 billion.

In the midst of global economic volatility, political conflicts and continued COVID-19-related disruptions, Hankook Tire recorded positive financial performance during the third quarter this year. Company sales increased 25.7% YoY and 12.7% QoQ while operating profit rose 6.4% and 9.8% respectively, with contributions coming from strong pricing strategy and impact of foreign exchange rates. Sales of high-value-added tires improved during the quarter along with original equipment (OE) tires in major markets including the U.S., Europe, China, and Korea. Demand for replacement equipment (RE) tires, however, slowed slightly compared to the same quarter last year.

One of Hankook Tire’s strongest segments, the large-diameter tire segment, remained strong in the third quarter. Global sales of passenger car tires 18 inches or higher accounted for 41.1% of the company’s total passenger car tire sales, up 4.7%p from last year. Segmented by region, Hankook Tire saw its largest growth for passenger car tires 18 inches or higher in the Chinese market with a 8.9%p year-on-year increase to 52.3%, followed by a 4.4%p YoY increase to reach 30.1% in Europe, a 4.2%p gain in Korea at 51.4%, and the U.S. market reporting 3.6%p YoY increase at 51.2%.

In addition to continuing securing OE supply for premium electric vehicle (EV) models, Hankook Tire expanded its newly-launched family of EV specific tires, the iON (pronounced as /ai'on/) by adding Smart iON AU06+ for trucks and buses to the portfolio. Furthermore, Hankook is set to serve as an exclusive supplier and technical partner of the world’s first all-electric racing series, ABB FIA Formula E World Championship, starting 2022/23 season.

By the end of this year, Hankook Tire aims to achieve double-digit growth YoY although market uncertainties are expected to persist, triggered by economic downturn and surging energy prices. The company will focus on sustaining increased sales portion of high-inch wheel size tires among total sales of passenger car tires and gaining leadership in the electric vehicle tire segment.

Q3 2022 Consolidated Financial Result

*Exchange Rates:

(NOTE: Average exchange rates for the given period, retrieved from Korea Exchange Bank)

2022 Cumulative Financial Result

*Exchange Rates:

(NOTE: Average exchange rates for the given period, retrieved from Korea Exchange Bank)