[Edaily Reporter Kim Hyung-wook ] HANKOOK TIRE & TECHNOLOGY(161390)reported a significant increase in second-quarter operating profit, driven by expanded sales of high-value-added tires, including those for large-inch vehicles and electric vehicles.
Hankook Tire announced on the 11th that it recorded consolidated revenue of 5.6824 trillion won and operating profit of 559 billion won in the second quarter of this year. Compared to the same period last year, revenue increased by 5.8% and operating profit rose by 58.1%.
Revenue in the core tire division reached 2.8073 trillion won, up 11.8% from the same period last year, marking a record high for a single quarter. Operating profit rose 39.5% to 483.2 billion won, with an operating profit margin of 17.2%.
Supplies of original equipment (OE) tires increased, particularly in Europe and China, while demand for replacement (RE) tires remained robust. In particular, profit margins improved as sales of high-value-added products—such as high-inch tires and tires for electric vehicles—expanded.
In the second quarter, high-inch products (18 inches and larger) accounted for 49.5% of total sales of tires for passenger cars and light trucks. The share of electric vehicle tires within sales of OE tires for passenger cars and light trucks also rose to 31.8%. Hankook Tire is targeting 51% and 33% or more for these categories, respectively, this year.
The thermal management division of Hanon Systems, which has been included in consolidated financial results since last year, also showed signs of improvement. Second-quarter revenue rose 0.6% to 2.8752 trillion won, while operating profit increased 61.2% to 103.7 billion won. The operating profit margin stood at 3.6%. Expanded supply to premium European customers, reductions in costs and transportation expenses, and the recovery of customs duties all contributed to the improvement in profitability.
Hankook Tire is expanding its supply of original equipment tires to models such as the Porsche “911 Carrera,” the Audi Q7 and Q9, and the Infiniti All-New QX65. The company also plans to expand its production capacity in North America and Europe through expansions at its Tennessee and Hungary plants.
