Hankook Tire & Technology (Hankook Tire) announced 2022 financial results consolidated global sales all time high at KRW 8,394.2 billion.
Operating profit stood at KRW 705.7 billion. Both sales and operating profit increased YoY 17.5% and 9.9%, respectively.
Record high annual sales was propelled by the expansion of high-value-added products and strong pricing strategy to take the business through the global economic conditions which saw high raw material costs and global supply chain distruptions in the first half of the year. As costs of raw materials and logistics stablized in the second half of 2022, favorable currency situation and an increase in original equipment tire demand pushed up the bottom line.
Sales of the large-diameter tires were among the biggest contributors to the increase in sales. Global sales of passenger car tires 18 inches or higher accounted for 40.8% of the company’s total passenger car tire sales, up 3.1%p YoY.
In the fourth quarter alone, the figure reached 43.9%, a 5.0%p increase YoY. By region, Hankook Tire saw its largest growth for passenger car tires 18 inches or higher in the Chinese market with a 12.4%p YoY increase to 58.8% during the fourth quarter, followed by a 5.7%p YoY increase to reach 53.5% in Korea, a 3.4%p YoY in Europe at 32.5%, and the North American market reporting 2.5%p YoY increase at 51.9%. This led Hankook Tire to log consolidated global sales of KRW 2,263.8 billion and operating profit of KRW 212.0 billion, up 19.9% and 140.1% YoY, respectively, in the fourth quarter. However, demand for replacement equipment tires dipped slightly compared to the previous year with inflation weighing on consumer sentiment.
In 2022, in overall, Hankook Tire boosted its presence in the electric vehicle (EV) market. Hankook’s first family of tires specially designed for high performance, premium electric vehicles, named the iON (pronounced as /ai’on/), was rolled out in several markets. Hankook continued to secure OE supply for global carmakers’ EV models including BMW i4, Audi Q4 e-tron, Hyundai IONIQ 6, Toyota bZ4X, and Škoda Enyaq iV. Furthermore, Hankook made debut as an exclusive supplier and technical partner of the world’s first all-electric racing series, ABB FIA Formula E World Championship.
Hankook’s excellence in tire technology was recognized in tire tests by renowned automobile magazines. Hankook’s Kinergy 4S 2, which is showing strong sales in the European market, won the All Weather Tire Test by UK’s leading car magazine Auto Express for the second year in a row. The Ventus S1 evo 3 SUV was crowned test winner in Auto Bild Allrad magazine, Europe’s largest all-terrain vehicle magazine.
In the meantime, Hankook continued to solidify its Environmental, Social and Governance (ESG) leadership, earning its seventh consecutive listing in the esteemed Dow Jones Sustainability Indices for industry-leading sustainability.
By the end of this year, Hankook Tire aims to achieve sales growth of over 5% YoY while increasing the portion of high-inch tires among total sales of passenger car tires to 45%. The company also seeks to raise the share of original equipment supply for electric vehicle models to 20% among all passenger car and light truck OE contracts. On the whole, Hankook Tire will focus on increasing sales in major markets, strengthening partnership with premium carmakers and sustaining leadership in the electric vehicle tire segment.