Hankook Tire Co. Ltd. posted global consolidated sales of 1.61 trillion won for its first quarter of 2018, which is 1.7% less than the year-ago period when sales were 1.64 trillion won.
Operating income was $184.4 billion won versus $231.2 billion won in the year-ago quarter.
Based on the exchange rate on March 31, 2018, sales in 2018's first quarter were $1.5 billion.
The company did not release net income.
Weak original equipment sales led to lower sales year compared to the year-ago quarter with the exception of North America, which continue to show strong OE growth.
The company says sales of 17-inch and larger rim passenger and light truck tires were up 3.2% year over year and account for 50.6% of total global sales.
Sales were down versus a year ago in Korea, China and North America, but were up in Europe. In Korea, both replacement and OE sales were down compared to a year ago. In China, replacement sales were stable, but OE sales were weak. The company said replacement sales growth was stable in major European countries while OE tire sales were weak.
In North America, sales were 446 billion won, down from 452 billion won in the first quarter of 2017. Sales of 17-inch and larger passenger and light truck tires accounted for 57.5% of Hankook’s sales in North America in the first quarter compared to 60.6% in the year-ago period.
The company attributed lower replacement sales in North America to weak market demand. However, the company said OE sales were strong with “increases sales to major OE partners.”
For more information about Hankook and its products, visit www.hankooktire.com.