Total sales reach 5.46 trillion won, operating profit 598.8 billion won

Tire sales up 3.7% but raw material, logistics costs weigh

High-inch, EV-dedicated tire share continues to grow

Hankook Tire & Technology's headquarters, Technoplex. [Hankook Tire & Technology]
Hankook Tire & Technology's headquarters, Technoplex. [Hankook Tire & Technology]

Hankook Tire & Technology posted consolidated sales of 5.46 trillion won ($4.07 billion) and operating profit of 598.8 billion won in the third quarter. Tire segment sales rose on higher volumes and a favorable exchange rate, but operating profit declined as geopolitical tensions in the Middle East pushed up raw material and logistics costs.

Tire segment sales grew 3.7 percent year-on-year to 2.81 trillion won, a record high on a quarterly basis, the company said. Operating profit in the segment fell 2.6 percent to 505.9 billion won. The company said expanded sales of high-value-added products partially offset the cost pressures.

Hanon Systems, a thermal-management subsidiary included in the consolidated results, reported third-quarter sales of 2.66 trillion won, down 1.8 percent, while operating profit surged 26.6 percent to 120.6 billion won.

Hankook Tire has been broadening its product lineup to include tires of 18 inches and above, winter tires and electric vehicle-dedicated tires. Through the first three quarters, tires of 18 inches or larger accounted for 49.4 percent of passenger car and light truck tire sales. EV-dedicated tires made up 32.3 percent of original equipment sales in the passenger car and light truck segment.

The company has also been expanding its original equipment supply partnerships with global automakers. This year it began supplying tires for the Porsche 911 Carrera and extended that to the Porsche Panamera and Volkswagen Atlas, among others. It has also supplied tires for the Porsche Taycan and Ford Mustang Mach-E. Hankook Tire continues to target the replacement tire market with its EV-dedicated tire brand iON.

In motorsports, the company supplies racing tires for the FIA World Rally Championship and the Lamborghini Super Trofeo, among other series. It is also developing next-generation tire technologies, including the airless tire i-Flex.

Hankook Tire is scaling up production facilities at its factories in Tennessee and Hungary to strengthen its global manufacturing and supply base. The company plans to respond to shifting demand in key markets such as the United States and Europe while deepening original equipment supply cooperation with automakers.


eyre@heraldcorp.com