Sales revenues dropped slightly as Hankook Tire Co. Ltd.’s operating income fell 11.3% to 7.0 billion won in 2018 compared to 7.9 billion won in 2017.
2018's sales dipped 0.3% to 6.8 trillion won year over year.
Based on the exchange rate, sales in 2018 totaled $6.2 billion, according to the company.
The company did not release net income.
The company attributed the decline in operating income and sales to a slowdown in demand from global auto markets like China. Less demand led to a decrease in sales of replacement tires and original equipment tires.
Revenue from sales of 18-inch and larger tires in Europe and the United States were 3.9% higher in 2018 compared to 2017. Sales of 18-inch and larger tires accounted for 52.3% of the company’s passenger car tires.
The company said that replacement market sales and the sales-share of high inch tires continued to increase due to strengthened distribution channels in the Korean market, especially in the fourth quarter of 2018. In addition, the supply of original equipment tires for sport utility vehicles and Japanese automobiles sold in North America continued to expand, according to the company.
Hankook is targeting global sales revenue of 7.4 trillion won and operating income of 7.5 billion won in 2019. The company says it plans to focus on strengthening its position as a premium brand by increasing sales of high inch tires, starting at 18-inch, in major markets, supplying OE tires for premium cars, and strengthening competitiveness in its premium product lines. Hankook Tire also plans to diversify its OE portfolio.
For more information about Hankook and its products, visit www.hankooktire.com.