Suppliers

Hankook's 2019 Operating Income Drops By Double Digits

Posted on February 18, 2020

Sales revenue rose slightly as Hankook Tire & Technology Ltd.’s operating income fell 22.7.% to 5.4 billion won in 2019 compared to 7.0 billion won in 2018.

Hankook’s sales were up 1.5% in 2019 to 6.9 trillion won year over year.

The company did not release net income.

Hankook said the industry faced challenging market conditions in 2019 with a “slow global economy, U.S.-China uncertainties, decline of auto sales, softening demand and intense competition in the tire industry.”

However, a positive foreign exchange effect, improved product mix and the integration of Germany’s Reifen-Muller tire wholesaler and retailer helped Hankook overcome sales volume declines in major markets.

In the North America region, Hankook said U.S. sales showed a slight recovery but weak sales in Canada lowered overall sales for the region year over year. In addition, decreased vehicle production contributed to a drop in OE sales.

Sales of larger rim-diameter (over 17 inches) tires accounted for 55.4% of Hankook's global revenue in 2019 versus 52.3% in 2018.

In North America, sales of tires over 17 inches in diameter made up 69.4% of revenue in 2019’s fourth quarter versus 66.3% in the year-ago period.

Steps to boost Hankook's financial performance in 2020 include increasing year over year sales of tires with rim diameters 18 inches and larger by more than 20%.

The company said it is meeting rising global demand for high-inch fitments for sport utility and electric vehicle tires.

Related Topics: Hankook financials, Hankook Tire & Technology Ltd.

Comments ( 0 )
More Stories
News Cooper Extends Shutdown in U.S. and Mexico

Cooper Tire & Rubber Co. will keep its tire manufacturing plants in the U.S. and Mexico closed for at least another two weeks. Cooper's plans in Europe also remain shut down.  

News Nexen Distribution, Dealer Support Will Remain Operational

Nexen Tire America Inc. says its tire distribution capabilities and dealer support functions remain fully operational during COVID-19 crisis.

News Hankook Rolls Out New Rebate Program

Hankook Tire America Corp.’s new rebate program offers consumers savings of up to $80 on four Hankook tires.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!

We respect your data and privacy.
By clicking the submit button below, you are agreeing with Bobit Business Media’s Privacy Policy and this outlined level of consent.