Press Release

  • Corporate

Hankook announces Q3 financial results

  • Q3 performance includes a 1.8 percent increase in sales and a 106 percent increase in operating profits YoY
  • Continued supply of OE tyres for high-performance vehicles paired with improved sales of electric vehicle tyres
  • Benefits from favourable external conditions such as stabilisation of raw materials prices and maritime freight costs
Hankook announces Q3 financial results

Seoul, Korea / Neu-Isenburg, Germany, 2 November 2023 – Premium tyre manufacturer Hankook announced sales of KRW 2,340.0 billion (approx. EUR 1,638.4m) and an operating profit of KRW 396.3 billion (approx. EUR 277.4m) based on global consolidated financial results for the third quarter of 2023. Sales and operating profit increased by 1.8 percent and 106 percent respectively year-on-year (YoY).

In the third quarter, Hyunbum Cho, Chairman & CEO of Hankook & Company, focused on pre-emptive investments to supply new tyres for electric vehicles (EV) and original equipment (OE) tyres for supercar brands, with the aim of dominating the future mobility industry. In particular, the company saw notable results in the research & development (R&D) undertaken to meet the tyre performance requirements for supercars and high-performance electric vehicles of global premium automobile brands.

In addition, Hankook has been continuously expanding its sales regions and product line-ups after the global launch of the world’s first full-line EV tyre brand ‘iON’ in May 2022. Simultaneously, it also managed to actively engage as the exclusive supplier and official partner of the world’s best EV racing competition ‘ABB FIA Formula E World Championship’. This is because, leading the global EV tyre market, Hankook has successfully proven its long-established technology in electric vehicles, even prior to widespread commercialisation.

Hankook is firmly establishing its position as a leading global tyre company with approximately 250 original equipment supply lines to around 40 global automobile brands, including Audi, BMW, Mercedes-Benz, Porsche and Tesla. This underscores its status as a top-tier premium tyre brand in the global market.

Furthermore, the company has maintained strong performance amid a challenging business landscape. This is attributed to factors such as stabilised prices of raw materials, including synthetic rubber and carbon black, as well as the reduction in maritime freight costs. Its strategic pricing and effective management of state-of-the-art products, including high-inch, high-performance and electric vehicle tyres, have been instrumental in creating synergistic effects leading to commendable results.

These effects have extended into Q3, with tyres designed for passenger cars and light trucks (PCLT) with a size of 18 inches or larger accounting for 43.4 percent of total sales. This represents a growth rate of 2.3 percentage points (pp) YoY. Among the major regions, China had the highest proportion of sales for high-inch passenger car tyres at 57.3 percent, followed by Korea at 53.6 percent, North America at 51.4 percent and Europe at 34.3 percent.

 

Q3 2023 Consolidated Financial Result

(Unit: Billion KRW)

Q3 FY 2022

Q2 FY 2023

Q3 FY 2023

Sales

2,299.7

2,263.4

2,340.0

Operating Profit

192.4

248.2

396.3

(Unit: Million USD)

Q3 FY 2022

Q2 FY 2023

Q3 FY 2023

Sales

1,718.7

1,721.6

1,784.9

Operating Profit

143.7

188.7

302.3

(Unit: Million EUR)

Q3 FY 2022

Q2 FY 2023

Q3 FY 2023

Sales

1,706.6

1,580.8

1,638.4

Operating Profit

142.7

173.3

277.4

 

*Exchange Rates:

 

Q2 FY 2022

Q1 FY 2023

Q2 FY 2023

USD / KRW

1,337.98

1,314.68

1,310.95

EUR / KRW

1,347.50

1,431.77

1,428.19

(NOTE: Average exchange rates for the given annual period, 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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