Hankook Tire Co. Ltd. says its third quarter 2020 operating profit increased more than 220% from the second quarter of the year thanks to a rebound in replacement tire sales in North America, China and Europe.
Hankook's 3Q 2020 sales jumped 38.3% from the 2Q 2020.
Year-over-year, the company achieved a 24.6% increase in operating profit and a 2.8% increase in sales.
China was a particular bright spot for Hankook during the third quarter. In that country, "sales of high-inch tires - 18 inches or higher - accounted for 33.6% of the sales of tires for passenger cars, up 8.9% year-over-year, leading the company's growth.
"The recent recovery is especially meaningful as it stands out in the replacement sector where consumers make their own choices for tires," say Hankook officials.
"COVID-19 has influenced the global consumption pattern, which includes a further increase in the number of customers seeking value for money products, and this is accredited to Hankook’s overall sales growth."
Looking forward, Hankook plans to "strengthen its standing as a premium brand by expanding its partnership with global carmakers, including the OE supply of Ventus S1 Evo3 ev to Porsche's first high-performance electric sports car, Taycan."
The tiremaker also will continue to target "price-sensitive consumers" with its Laufenn brand.
And expanding sales of 18-inch and larger tires will remain a priority, according to company officials.
