SEOUL, South Korea — Hankook Tire & Technology Co. Ltd. reported a 6.4% increase in operating profit for the quarter ended Sept. 30 on 26% higher sales, due mainly to strong pricing and the impact of foreign-exchange rates.
Operating profit increased to $143.7 million on sales revenue of $1.72 billion, Hankook said Nov. 2, dropping the operating ratio by 1.6 points to 8.3%.
Sales of original equipment and larger rim-diameter (18 inches and above) tires contributed to strong financial performance, Hankook said, while the replacement tire sector experienced a "slight downturn in demand."
Global sales of larger diameter tires accounted for 41% of the company's total passenger car tire sales, up 4.7 percentage points from the 2021 third quarter.
For the nine months ended Sept. 30, Hankook reported an 11% drop in operating earnings to $368 million, on 16.7% higher sales of $3.93 billion.
Broken down by region, Hankook recorded 31.5% higher revenue in North America in the quarter, rising to $499 million. Sales in Europe rose 22.8% to $620 million, while domestically, revenue in South Korea was up 9.8% to $157 million.
For the full year, Hankook said it was aiming for a double-digit growth, "even though the market uncertainties triggered by the economic downturn and surging energy prices are likely to persist."
The company said it would focus on further increasing the share of large tires in total sales and "becoming the leader in the electric vehicle tire segment."