Hankook report 33 percent profit increase for second quarter

Seoul, South Korea – Hankook & Company Co., Ltd., the holding company of Hankook Tire & Technology Co., Ltd., posted financial results for the second quarter 2022 with consolidated global sales of KRW 308.6 billion and an operating profit of KRW 102.7 billion. Sales revenue and operating profit increased 33.7% and 71.6% respectively compared to the same period last year, whereas the group saw an increase of 14.4% and 133.2% in sales revenue and operating profit respectively since Q1 2022.

Hankook & Company secured sales growth in the second quarter of 2022 through effective pricing strategies driving demand for products of its battery brand, represented as ‘AtlasBX’ in the domestic market and as ‘Hankook’ in the overseas market. However, cost increase of lead, the main raw materials for lead-acid batteries, and increase in ocean freight rates due to global economic situations continued to be the main factors affecting AtlaxBX’s operating profit.

Strong performance in the group’s overall operating profit was also attributed to its major affiliate brand, Hankook Tire. Volatile external conditions including rising sea freight rates, geopolitical events, pandemic-related lockdowns and inflation in China weighed on the decline of Hankook Tire’s operating profit. However, the company’s net profit increased YoY due to favorable exchange rates.

2021 was a momentous year for Hankook & Company as the group announced that it will launch as an operating holding company to achieve maximized efficiency under a rapidly changing business environment. Series of foresighted investments and key structural decisions followed, starting with the merger in April which saw the battery brand, AtlasBX, become part of Hankook & Company. Through this merger, batteries are representatively sold under the ‘Atlas BX’, and ‘Hankook’ brand, currently providing to approximately 120 countries around the world. In the following month in May, the company declared a new long-term business portfolio, named ‘S.T.R.E.A.M’ to increase competitiveness and gain stronger leadership in the company’s core businesses. Each letters of the acronym demonstrate the essential directions the group aims to take in future development, with ‘S’ standing for Smart Energy, ‘T’ for ‘Tire & Core’ business, ‘R’ for Rising Tech, ‘E’ for Electrification, ‘A’ for Automation, and ‘M’ for Mobility.