SEOUL, South Korea—Propelled by the expansion of high-value-added products and strong pricing strategy, Hankook Tire & Technology Co. Ltd. reported 9.9-percent higher fiscal 2022 operating income on record sales.
Operating profit increased to $546.9 million on 17.5-percent higher sales of $6.5 billion. As a result, the operating ratio slipped slightly to 8.4 percent.
Hankook noted that fiscal 2022 was a tale of two halves—the first six months of the year were impacted by high raw material costs and global supply-chain disruptions, while the costs of raw materials and logistics stabilized in the second half and a favorable currency situation and increased original equipment demand boosted the bottom line.
Record annual sales were buoyed by rising demand for high-value-added products and strong pricing strategy despite global market conditions.
Sales of the larger rim-diameter tires—those 18 inches and larger—made measurable contributions to the increased sales. Global sales of such tires accounted for 40.8 percent of the company's total passenger tire sales, up 3.1 percentage points over 2021.