Hankook Posts First Quarter Sales, Profit Declines
Hankook Tire & Technology Co. Ltd. experienced a 12.6% year-over-year decline in sales during the first quarter of 2020 and a drop in operating profit of 11.2%, 1Q 2020 verus 1Q 2019.
In North America, Hankook's sales "linear to market demand dropped considerably in March" due to the COVID-19 pandemic, and "production cuts (made by) OE suppliers led to a sales decline."
Hankook expects that its sales for the month of April in both the United States and Europe will be 40% less than what it posted during the same month last year.
The company's U.S. plant resumed production activities in late-April after a temporary manufacturing suspension.
The facility, which is located in Clarksville, Tenn., can build 13,900 consumer tire units at full capacity, according to MTD data.
Another first quarter bright spot for Hankook was the increase it achieved in sales of high-diameter consumer tires. (The company posted a 2.7% year-over-year increase in 18-inch and above tires.)
Hankook officials say the tiremaker "is preparing several means for rebound once COVID-19 is under control."