Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Global Tire Report
    • ADAS
    • MID YEAR REPORT
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OPINION
    • SERVICE ZONE
    • BEST PLACES TO WORK
    • OBITUARIES
  • HUMANITARIAN
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • ADVERTISE
    • Events
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Manufacturers
May 07, 2020 10:28 AM

Hankook books double-digit drops in Q1 sales, earnings

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More

    SEOUL, South Korea — Hankook Tire & Technology Co. Ltd. reported double-digit declines in operating income and sales for the quarter ended March 31. The company attributes this to a sharp drop in demand caused by the worldwide economic slowdown due to the COVID-19 pandemic and lower consumer sentiment.

    Operating income dropped 24.8% to $88.6 million on 12.6% lower sales of $1.2 billion, cutting the operating ratio nearly 1½ points to 7.3%. The falling demand was seen in both the original equipment and replacement markets, Hankook said.

    The Seoul-based company also cited costs associated with having to adjust the operating status of its various plants worldwide. The company idled its plant in Dayton, Tenn., for three weeks in March and April, for example, and furloughed operations at its Racalmas, Hungary, factory for at least two weeks in late March/early April.

    It did not comment on measures taken at plants in Korea or China.

    On a positive note, Hankook said sales of larger rim-diameter tires, those 18 inches and larger, accounted for a larger percentage of its overall tire sales — 33.7% in 2020 versus 31% in 2019. Hankook pointed to the "stable" growth in demand for these higher-value-added products in North America, China and Korea for allowing it to consolidate its premium-brand image.

    The company said it would seek to "further solidify" its standing as a premium brand by expanding sales of such tires in major markets, increasing its supply relationships with makers of premium cars and strengthening product competitiveness.

    Specific initiatives cited by Hankook to accomplish its goals include building a more diversified product portfolio and expanding its global production and distribution networks.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Analyst: Now is a good time for Goodyear to divest assets
    2
    UPDATE: ITC to proceed with Thai truck tire dumping case
    3
    Straightaway Tire buys 2 dealerships in Minnesota
    4
    Tire Business ranks the Top 75 Tire Makers of 2023
    5
    Passenger tire imports up in Q3 but LT, TBR drop
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Global Tire Report
      • ADAS
      • MID YEAR REPORT
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OPINION
      • SERVICE ZONE
      • BEST PLACES TO WORK
      • OBITUARIES
    • HUMANITARIAN
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • ADVERTISE
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION