Hankook Tire & Technology achieved first quarter sales increase of 17.5% compared to last year's first quarter sales.
The company achieved a 51.5% increase in operating profit from 1Q 2022 to 1Q 2023.
Hankook officials say the 1Q increase between 2022 and 2023 came from higher volumes and improved pricing.
However, there was a decrease of 10% in operating profit sales from the fourth quarter of last year compared to 1Q 2023.
Hankook officials say that "the OE market continued to recover with alleviated semiconductor chip shortage, with the exception of China showing weak auto production.”
The replacement market declined due to “an unfavorable comparison basis and softer market demand.”
Hankook's "sales ratio of greater than or equal to 18 inches within passenger, car and light truck market increased to 43.5% up to 4.5% year over year.
"Based on premium brand strategies that include increasing the proportion of high-value-added products and securing the sales of tires exclusive to electric vehicles (EVs), the sales and operating profit of Hankook Tire achieved growth, despite a context of difficult business conditions, such as the global economic downturn, intensifying competition and more.
"This performance was supported by the increase in supply of original equipment tires, with the stabilization of semiconductor supply and the rise of global sales of replacement tires in regions like Europe."
Hankook says its target for 2023 is to have 5% year-over-year sales growth. The company anticipates CAPEX investments of around one trillion won, “including Tennessee plant expansion costs, maintenance and modernization costs.”
The company always wants to further increase the high-inch sales ratio to 45% in 2023 and it wants to expand EV vehicle tire sales to 20%.
More information can be found here.
