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(LEAD) Hankook Tire Q3 net falls 21 pct on FX losses

All News 16:22 November 02, 2020

(ATTN: REWRITES throughout; ADDS photo)

SEOUL, Nov. 2 (Yonhap) -- Hankook Tire & Technology Co., the world's seventh-biggest tiremaker by sales, said Monday its third-quarter net profit fell 21 percent from a year earlier on foreign-exchange losses.

Net profit for the three months that ended in September plunged to 142.22 billion won (US$125 million) from 180.89 billion won in the year-ago period, the company said in a statement.

"The quarterly bottom line was affected by increased foreign-exchange translation losses caused by the won's strength against the dollar," a company spokesman said over the phone.

The dollar fell to 1,173.50 won at the end of September from 1,201.30 won a year earlier, according to data from the Bank of Korea.

(LEAD) Hankook Tire Q3 net falls 21 pct on FX losses - 1

Operating profit fell 25 percent to 224.6 billion won in the third quarter from 180.3 billion won a year ago. But sales rose 2.8 percent to 1.37 trillion won from 1.74 trillion won over the cited period.

From January to September, its net profit plummeted 41 percent to 235.27 billion won from 399.26 billion won in the year-ago period.

Operating profit fell 6.1 percent to 400.76 billion won in the first 10 months from 426.72 billion won a year earlier. Sales were down 10 percent to 4.69 trillion won from 5.22 trillion won during the same period.

Hankook Tire earns over 80 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.

kyongae.choi@yna.co.kr
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