Press Release

  • Corporate

Hankook announces Q1 2024 financial results

  • Hankook maintained a strong performance, having grown its sales by 1.1 percent and its operating profit by 108.8 percent year-on-year (YoY)
  • The company is leading the electric vehicle (EV) tyre market and increasing sales of high-value-added products under the leadership of Hankook & Company Group Chairman Hyunbum Cho
  • Strong operating margins reflect external changes, including the stabilisation of global raw material prices and ocean freight costs
Hankook announces Q1 2024 financial results

Seoul, Korea / Neu-Isenburg, Germany, 30 April 2024 Premium tyre manufacturer Hankook announced sales of KRW 2,127.2 billion (approx. EUR 1,474.0m) and an operating profit of KRW 398.7 billion (approx. EUR 276.2m) based on the global consolidated financial results for the first quarter of 2024. Sales increased 1.1 percent year-on-year (YoY), and operating profit increased 108.8 percent.

Despite the global economic downturn and the tensions in the Middle East, Hankook has continued to grow under the leadership of Hankook & Company Group Chairman Hyunbum Cho, who strategically chose to invest in research and development (R&D) in anticipation of the future mobility market. Furthermore, Hankook has yielded success by leading the EV tyre market and expanding sales of high-value products based on its supercar and global premium brand strategy.

Due to the company's early emphasis on developing tyre technology for high-performance premium electric vehicles, Hankook is now at the forefront of the worldwide EV tyre market, dominating the industry even before EVs became widely available. Hankook has continued diversifying its portfolio for the tyre brand iON since its release and is currently selling 202 tyre specifications ranging from 16 to 22 inches. In March 2023, iON outperformed rivals from top-tier brands in a test conducted by TÜV SÜD, a global testing and certification agency.

This year, the company aims to boost the proportion of EV tyres in its passenger car and light truck (PCLT) Original Equipment Tyre (OET) supply to 25 percent. Hankook is now providing OET for electric vehicle models for the Audi e-tron GT, BMW i4, Hyundai Ioniq 6, Porsche Taycan, Tesla Model Y, and Model 3 and Volkswagen ID.4.

In PCLT tyre sales, the proportion of sales of high-inch passenger tyres (18 inches and above) was 46.8 percent, up 3.3 percentage points YoY. By region, the share of high-inch passenger tyres was highest in China (62.5 percent), followed by Korea (56.5 percent), North America (56.4 percent) and Europe (37.4 percent).

As a world-leading tyre company, Hankook has consolidated its global technological competitiveness by fulfilling the tyre performance requirements of high-performance vehicles and global premium brands, currently supplying new tyres for more than 250 models from nearly 40 automakers, including Audi, BMW, Mercedes-Benz, Porsche and Tesla.

Hankook is also positioning itself as the world’s leading EV tyre technology and premium brand. Since the 2023 season, Hankook has been the exclusive tyre supplier and official technical partner of the ABB FIA Formula E World Championship, the world’s premier EV racing competition. Also, Hankook is focusing on developing tyre technology and improving the performance of EV tyres by leveraging the data acquired from the competition to improve its product line.

Prices of raw materials such as synthetic rubber and carbon black were maintained at a decent level, as were ocean freight costs, contributing to this quarter’s solid performance.

 

Q1 2024 Consolidated Financial Result

(Unit: Billion KRW)

Q1 FY 2023

Q4 FY 2023

Q1 FY 2024

Sales

2,104.0

2,232.0

2,127.2

Operating Profit

190.9

492.4

398.7

(Unit: Million USD)

Q1 FY 2023

Q4 FY 2023

Q1 FY 2024

Sales

1,649.4

1,689.8

1,601.2

Operating Profit

149.6

372.7

300.1

(Unit: Million EUR)

Q1 FY 2023

Q4 FY 2023

Q1 FY 2024

Sales

1,537.4

1,570.2

1,474.0

Operating Profit

139.4

346.4

276.2

 

*Exchange Rates:

 

Q1 FY 2023

Q4 FY 2023

Q1 FY 2024

USD / KRW

1,275.58

1,320.84

1,328.45

EUR / KRW

1,368.51

1,421.43

1,443.10

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

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/street circuits/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.

Hankook Tire’s European headquarters are located in Neu-Isenburg near Frankfurt am Main in Germany. The manufacturer operates further branches in several European countries and sells its products through regional distributors in other local markets. Hankook Tire employs approximately 20,000 people worldwide and sells products in over 160 countries. The company has been the technical partner and exclusive tyre supplier of the Generation 3 for the FIA ABB Formula E World Championship since 2023. Internationally leading car manufacturers rely on tyres made by Hankook for their original equipment. Approximately 38 percent of the company's global sales are generated within the European region.

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

Hankook Tire Europe GmbH | Marketing Communications Europe | Siemensstr. 14, 63263 Neu-Isenburg | Germany

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Contacts

Sabine Riedel

PR Manager Marketing Communications

 +49 (0) 6102 8149-178

Lisa Schmid

PR Manager Marketing Communications

+49 (0) 6102 8149-172

Alexander Nevinny-Stickel

PR Manager Marketing Communications

+49 (0) 6102 8149-173

Annika Malcherek

Annika Malcherek

Digital Lead Marketing Communications

+49 (0) 6102 8149-176

Zoë Baldwin

Marketing Manager
Hankook Tyre UK Ltd

 +44 7948 247048

Natasha Ramos Smyth

Marketing Executive
Hankook Tyre UK Ltd

 +44 7961 601839

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