Press Release

  • Corporate

Hankook Tire Announces Financial Results for the Second Quarter of 2020

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.

Seoul, Korea / Neu-Isenburg, Germany, August 3, 2020 – Premium tyre maker Hankook announced today 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).

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.

 

Q2 2020 Consolidated Financial Result

(Unit: Billion KRW)

Q2 FY 2019

Q1 FY 2020

Q2 FY 2020

Sales

1,740.5

1,435.7

1,367.6

Operating Profit

105.7

106.0

70.1

(Unit: Million USD)

Q2 FY 2019

Q1 FY 2020

Q2 FY 2020

Sales

1,492.8

1,202.8

1,120.2

Operating Profit

90.7

88.8

57.4

(Unit: Million EUR)

Q2 FY 2019

Q1 FY 2020

Q2 FY 2020

Sales

1,328.7

1,090.5

1,017.0

Operating Profit

80.7

80.5

52.1

*Exchange Rates:

 

Q2 FY 2019

Q1 FY 2020

Q2 FY 2020

USD / KRW

1,165.91

1,193.60

1,220.87

EUR / KRW

1,309.91

1,316.58

1,344.74

Hankook Tire manufactures globally innovative, award winning radial tyres of proven superior quality for passenger cars, light trucks, SUVs, RVs, trucks, and buses as well as motorsports (circuit racing/rallies).

Aspiring to bring consumers the utmost excellence in product quality, technological excellence and driving satisfaction, Hankook Tire continuously invests in research and development maintaining five R&D centres and eight production facilities around the world. Bespoke tyre solutions for the European markets as well as European Original Equipment according to the requirements of leading premium car manufacturers, are developed in the company’s regional Technical Centre in Hanover/Germany. Production for the European region is taking place in the state-of-the-art manufacturing site in Rácalmás/Hungary which was inaugurated in June 2007 and is continuously being expanded. Currently around 3,000 employees produce up to 19 million tyres a year for passenger cars, SUVs and light trucks.

Hankook Tire’s European headquarters are located in Neu-Isenburg near Frankfurt am Main in Germany. The manufacturer operates further branches in Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Austria, Poland, Russia, Serbia, Spain, Sweden, Turkey, UK and Ukraine. Hankook products are sold directly through regional distributors in other local markets. Hankook Tire employs approximately 20,000 people worldwide and are selling their products in over 180 countries. Internationally leading car manufacturers rely on tyres made by Hankook for their original equipment. Approximately 34 percent of the company's global sales are generated within the European and CIS-Region. Hankook Tire has been represented in the renowned Dow Jones Sustainability Index World (DJSI World) since 2016.

For more information please visit www.hankooktire-mediacenter.com or www.hankooktire.com


Hankook Tire Europe GmbH | Corporate Communications Europe/CIS | Siemensstr. 14, 63263 Neu-Isenburg | Germany

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