SEOUL, South Korea — Hankook Tire Co. Ltd. suffered a 42.2% drop in operating income for the quarter ended June 30 on 2.1% higher revenue, driven by increased sales of higher rim-diameter tires.
Hankook said the global automotive industry slowdown "negatively affected" its financial results for the period.
Operating income fell to $91.9 million on sales of $1.44 billion, resulting in an operating ratio of 6.1%, down nearly five points from the 2018 second quarter result.
Seoul-based Hankook cited a 2.8% increase in the sale of 18-inch and greater rim-diameter tires for buoying global revenue. Such products now account for nearly 55% of Hankook's passenger tire business, the company said.
From a strategy standpoint, Hankook said it's focusing on strengthening the company's position as a premium brand, a business decision that includes diversifying its OE portfolio to establish a stable growth structure and optimize its distribution strategies for each region.
For the half year ended June 30, Hankook's operating profit was down 8.3% to $209.9 million on 2.1% higher sales of $2.87 billion.