Higher Tire Volumes and Larger Sizes Benefit Hankook Sales

Hankook Tire & Technology recorded a 14% increase in year-over-year sales, alongside an operating profit that grew by 45.7% in the first half of 2023.

Sales for the first half totaled $3.3 billion, up from $2.9 billion. Operating profit accounted for 10.1% of sales.

In the second quarter, Hankook says sales increased by 11% compared to the second quarter of 2022, and sales were up 7.6% compared to the first quarter of 2023. Hankook said sales included “higher volumes and favorable inch mix.”

The sales ratio of tires 18 inches or larger increased 43.6% in the second quarter, and 4.5% for the year.

Hankook says the OE market is showing continued recovery as the shortage of semiconductor chips is waning, and thus new vehicle production is growing.

The replacement tire market is experiencing a slowdown “due to dealer inventory levels,” but Hankook says there are still signs of “a gradual recovery” each month. Still, Hankook says replacement tire volumes increased both year-over-year, and in the second quarter compared to the first.

Regionally, while overall sales dropped in Korea, Hankook’s sales grew in China, Europe and North America in the second quarter. In those four regions, 18-inch and larger tires represented more than 50% of sales in all but one region — Europe. (In Europe, the larger tires accounted for 33.4% of the region’s sales during the quarter.)

In North America, Hankook reported “soft market demand” for replacement sales, though “product-mix (showed) continued improvement.” OE sales continued to improve. Sales in North America totaled $493 million, up from $464 million in the first quarter. The recovery still fell short of the $531.4 million in sales recorded in the final quarter of 2022.

For the full year, Hankook is targeting 5% growth, while working to increase its sales of 18-inch and larger tires, and also expanding its OE tire sales to fit more electric vehicles.