Hankook Tire announces 2021 Q3 financial results

- Global sales recorded KRW 1.82 trillion and operating profit reached KRW 180.8 billion
- Sales of high-inch tires over 18 inches accounted for 36.4% of passenger car tires sold, up 2.4%p YoY
- Received top spots from renowned tire performance tests in the quarter in recognition of superior quality
- Operating profit decreased YoY, with global production of automobiles slowing due to parts sourcing and logistics challenges

Seoul, Korea, November 1, 2021 – Global leading tire company Hankook Tire & Technology (Hankook Tire) announced the company’s 2021 Q3 financial results with consolidated global sales of KRW 1.82 trillion and operating profit reaching KRW 180.8 billion.

Hankook Tire continued its qualitative growth this quarter with global sales of 18 inches and higher tires accounting for 36.4% of total passenger car tire sales, a YoY increase of 2.4%p. Its top-tier quality management and competitiveness led to the achievement. In particular, high-inch tire sales in Hankook’s major markets including South Korea, China, Europe, and North America rose compared to the same period last year. The company saw a 9.8%p increase YoY in sales of high-inch tires to reach 43.4% in China. As for the European market, sales of high-inch tires grew 3.6%p YoY.

Meanwhile, consolidated global sales and operating profit decreased 3% and 19.5% respectively compared to the same period last year as the global production of automobiles experienced a slowdown in the midst of key parts shortage, including semiconductors. Challenges were further escalated by the global supply chain crisis and increased raw materials costs. However, Hankook Tire delivered a meaningful quarter, showing further recovery from the previous quarter as the company’s global sales rose by 1.3% QoQ with continued market demand for replacement (RE) tires.

Moreover, Hankook Tire has received top spots in tire tests conducted by renowned automobile magazines during the second half. The company dominated all segments ranging from summer tire to winter and all-season tires. For example, Auto Bild Allrad’s 2021 all-season SUV tire test carried out in September saw Hankook Kinergy 4S 2 X being named as the winner. It adds significance as the Kinergy 4S 2 X was the only tire among competing tires that earned the highest possible ’Outstanding’ rating. Hankook Ventus S1 evo 3 was also recognized for its performance by taking first place in the 2021 summer tire test by Auto Express Magazine, the UK’s best-selling car magazine. Additionally, the company won this year’s winter tire test in Auto Bild Sportscars with its ultra-high performance Winter i*cept evo 3.

Hankook Tire continued to show strong presence in premium OE and electric vehicle (EV) markets. Hankook is equipping its ultra-high-performance tread, Ventus S1 evo Z, to the new Porsche Panamera. Moreover, Volkswagen ID.4 USA Tour team, which drove on Hankook’s EV dedicated Kinergy AS ev, has set a Guinness World Records title for the longest journey by electric car (non-solar) in a single country.

Seeking to reach a sales goal of KRW 7 trillion for this year, Hankook Tire will continue focusing on driving high-inch tire sales in major markets, expanding OE partnerships with global premium carmakers as well as on securing its leadership in the electric vehicle tire sector.

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