Hankook Tire & Technology Co. Ltd. posted a 108.8% operating profit increase during the first quarter.
The Seoul, South Korea-based company achieved a year-over-year operating profit of $287.3 million and sales of more than $1.4 billion during the quarter – the latter representing a year-over-year increase of 1.1%.
Factors impacting the market during the first quarter of 2024 included “high-interest rates and inflation,” among others, according to Hankook officials.
Globally, Hankook’s replacement tire sales “improved with increased sales of high-value products,” while original equipment tire sales “decreased with a high base effect and lower car production.”
Hankook reports that high-diameter (18-inch and up) tires made up 46.8% of its overall passenger and light truck tire sales on a global basis during the first three months of 2024, closing in on the company’s overall 2024 high-diameter tire sales ratio target of 49%.
Regional performance
In North America, Hankook achieved sales of $392 million during the first three months of 2024, down from $426.6 million during the same period in 2023.
Hankook officials report that the company saw “heightened competition in the replacement market” in North America, as well as “weakened demand” for TBR tires, both of which played a factor in its replacememt tire sales decline.
The company also experienced a decrease in OE sales in the region during the first quarter of 2024.
Moving forward, Hankook expects to see “stable market demand upon resilient economic conditions” in North America, as it focuses on “high-inch and high-value products” like tires for electric vehicles and SUVs.
The company experienced sales declines in its native country and in China during the first quarter of 2024 due to soaring interest rates, inflation, slow market recovery caused by "dampened consumer sentiment” and other factors.
Hankook fared better in Europe, where it posted sales of around $616.5 million, up from $571 million during 1Q 2023, thanks to “strong” consumer tire dales and “expanded sales of high-value products,” according to company officials.
New products
Hankook’s U.S. subsidiary, Hankook Tire America Corp., launched new products during 1Q 2024, including the Winter i*cept iZ3 tire, the latest addition to its winter tire range.
The tire is designed for compact and full-size sedans and provides improved performance on snow and ice. Its counterpart, the i*cept iZ3 X, is designed for the SUV segment.
“For many Americans, winter driving can be stressful, especially when encountering snow in excess or icy conditions,” said Rob Williams, president of Hankook Tire America Corp., when the new product was unveiled.
“Our latest seasonal product, the Winter i*cept iZ3 tire, along with its SUV counterpart, the i*cept iZ3 X, are engineered to provide confidence in extreme winter conditions with improved ice braking and acceleration.”
Hankook also rolled out two new TBR tires: the SmartLine AL52 and the SmartLine DL52.
"Our SmartLine AL52 and SmartLine DL52 provide long-haul solutions that are more economical and sustainably minded and improve on critical performance categories to help our nation's truckers go further,” said Haesik Lee, truck and bus marketing director of Hankook Tire America.
Both tires are designed for long-haul fitments and include Hankook’s latest TBR innovations, including Hidden Groove technology, which adjusts tread patterns as the tire wears.
