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Hankook Tire 2019 net dips 22 pct on lower demand

All News 16:53 February 13, 2020

SEOUL, Feb. 13 (Yonhap) -- Hankook Tire & Technology Co., the world's sixth-largest tiremaker by sales, said on Thursday that it posted a 22 percent on-year drop in net profit last year due to lower demand in major markets.

For the whole of 2019, net profit fell to 412.3 billion won (US$348 million) from 530.3 billion won a year earlier, the company said in a statement.

"The net result was affected by lower demand from global carmakers, prolonged uncertainties amid the trade dispute (between the United States and China) and tougher competition with rivals," a company spokesman said.

This file photo provided by Hankook Tire shows the tiremaker's plant in Geumsan, South Chungcheong Province. (PHOTO NOT FOR SALE) (Yonhap)

Operating profit also declined 23 percent to 542.9 billion won last year from 702.6 billion won a year ago. Sales rose 1.5 percent to 6.89 trillion won from 6.79 trillion won during the mentioned period.

In 2020, Hankook Tire aims to achieve 7.2 trillion won in sales by expanding sales of high-performance tire products and exploring new markets, the statement said.

The company earns over 85 percent of its total revenue from abroad. It has eight plants -- two in South Korea, one in Hungary, one in the United States, three in China and one in Indonesia -- whose combined capacity reaches 102 million tires.

Sales in Europe account for more than 30 percent of the tiremaker's overall sales.


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