Premium tyre maker Hankook Tire announced today the company’s financial result for Q1 2020 with consolidated global sales of KRW 1.4358 trillion (approx. 1.0905 billion Euro) and an operating profit of KRW 105.9 billion (approx. 80.4 million Euro).
Hankook Tire’s earnings declined due to a sharp drop in demand for tyres caused by the worldwide economic slowdown due to the COVID-19 pandemic and lower consumer sentiment. COVID-19 has had an overall impact on the major global markets, including a decrease in demand for original equipment tyres and replacement tyres, as well as the adjustment of the operating days of global production facilities.
Despite the aftermath of COVID-19, high-inch tyres equal to or above 18 inches accounted for 33.7% of the sales of tyres for passenger cars, which is an increase of 2.7% compared to the same period last year. This result was driven by Hankook’s global top tier technologies and quality. The stable growth of high inch tyres over 18 inches in North America, South Korea and China has further consolidated its premium brand image.
Moving forward, Hankook Tire plans to further solidify its standing as a premium brand by expanding sales of high inch tyres (over 18 inches) in major markets, supplying OE tyres for premium cars and strengthening product competitiveness. By optimizing the sales strategies for each region, Hankook aims to improve sales to help the company overcome the challenging market environment. Measures will include a diversified product portfolio and a continuous expansion of sales channels based on global production and distribution networks.
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