Press Release

  • Corporate

Hankook announces substantial growth with 2023 Q2 financial results

  • Robust Q2 performance includes 11 percent increase in sales and a 41.6 percent surge in operating profits year-on-year (YoY)
  • The company’s premium brand strategy, focused on expanding high-value products and acquiring market share in the EV tyre industry, yielded strong market penetration
Hankook announces substantial growth with 2023 Q2 financial results

Seoul, Korea / Neu-Isenburg, Germany, 28 July 2023 Premium tyre manufacturer Hankook announced sales of KRW 2,263.4 billion (approx. EUR 1,580.8m) and an operating profit of KRW 248.2 billion (approx. EUR 173.3m) based on global consolidated financial results for the second quarter of 2023. Sales and operating profit increased by 11 percent and 41.6 percent respectively YoY.

Despite the challenging business environment, such as slow economic growth, Hankook achieved broad-based growth. Through its global, top-tier technology and premium brand strategy, the company recorded robust sales of its electric vehicle (EV) tyres and high-value products, leading to increases in both sales and operating profit.

As vehicle production increased due to stable supply of automotive semiconductors, the supply of original equipment (OE) tyres continued to expand globally. Also, in spite of reduced demand due to high distributor inventories in major markets, sales of replacement tyres exceeded market demand. In addition, profitability improved due to stabilisation of raw material costs and freight rates.

The proportion of sales attributable to 18-inch and higher passenger car tyres – which are high-value-added products – reached 43.6 percent, up by 4.5 percentage points (pp) YoY. Sales of replacement tyres and OE tyres increased in the major markets, such as Europe, North America, and China, driving global growth. 

In the second quarter, Hankook launched ‘iON evo’ and ‘iON evo SUV’, rounding off a full lineup of EV tyres – including all-season, summer, winter, and high-performance tyres – in the Korean market. Hankook also introduced ‘iON evo’ and the all-season ‘iON ST AS’ tyre in China – the world’s largest EV market – and further solidified Hankook’s presence and competitiveness in the global market.

Though global economic uncertainty remains in the second half of the year, Hankook plans to focus on pursuing qualitative growth, such as achieving sales increase of more than 5 percent YoY raising the proportion of sales attributable to 18-inch and higher passenger car tyres to 45 percent. The company will also continue developing partnerships with leading global carmakers and expanding its presence in the EV market with the goal of reaching 20 percent of OE tyre supply for EV models among total supply of OE tyres for passenger cars and light trucks.

 

Q2 2023 Consolidated Financial Result

(Unit: Billion KRW)

Q2 FY 2022

Q1 FY 2023

Q2 FY 2023

Sales

2,039.9

2,104.0

2,263.4

Operating Profit

175.2

190.9

248.2

(Unit: Million USD)

Q2 FY 2022

Q1 FY 2023

Q2 FY 2023

Sales

1,619.5

1,649.4

1,721.6

Operating Profit

139.0

149.6

188.7

(Unit: Million EUR)

Q2 FY 2022

Q1 FY 2023

Q2 FY 2023

Sales

1,520.3

1,537.4

1,580.8

Operating Profit

130.5

139.4

173.3

 

*Exchange Rates:

 

Q2 FY 2022

Q1 FY 2023

Q2 FY 2023

USD / KRW

1,259.57

1,275.58

1,314.68

EUR / KRW

1,341.71

1,368.51

1,431.77

(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

all press releases

Downloads

Hankook announces substantial growth with 2023 Q2 financial results

File size: 733 KB

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

Stefan Prohaska

Stefan Prohaska

Digital Marketing Communications

 +49 (0) 6102 8149-171

Subscribe to the Hankook press releases