Hankook Reports Higher Revenue and Operating Profit

Tire manufacturer Hankook's third-quarter revenue and operating profit increased by 1.8% and 106%, respectively, compared to the same period last year, according to a company statement sent to MTI on Wednesday.

Hankook supplies tires to about 40 global car brands worldwide through about 250 original equipment supply chains, including Audi, BMW, Mercedes-Benz, Porsche and Tesla.

The statement highlighted Hankook's strong performance despite the still challenging economic conditions. This is due to factors such as stabilizing raw material prices, including synthetic rubber and carbon black, and a reduction in ocean shipping costs. Strategic pricing and effective management of premium products, including large diameter tires, high-performance tires and tires for electric vehicles, have contributed to the consistency that has led to excellent results.

According to Hankook, 18-inch and larger tires for passenger cars and light trucks accounted for 43.4% of total sales. This represented an increase of 2.3%age points compared to the same period last year. Among the main markets, China had the highest share of sales of large passenger car tires (57.3%), followed by Korea (53.6%), North America (51.4%) and Europe (34.3%).

Hankook Tire supplies its products to more than 160 countries and employs approximately 20,000 people worldwide.

Hankook chose Hungary as the location for its European factory. With an investment of EUR 885 million, the factory in Rácalmás, near Dunaújváros in central Hungary, started operations in June 2007 and has been growing and expanding ever since. The company employs around 3,000 people and produces tires for passenger cars, SUVs and light trucks. The third phase of investment was completed in spring 2015, bringing the Hungarian plant's annual production capacity to 19 million. The products made at the Rácalmás plant serve the European market and meet the specifications and requirements of leading car manufacturers, according to a Hankook statement.