April 26, 2024

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[THE INVESTOR] Hankook Tire said on Nov. 6 its third-quarter net profit fell 11 percent on higher raw materials costs.

Net profit for the three months that ended Sept. 30 fell to 184.88 billion won (US$166 million) from 207.56 billion won a year earlier, the company said in a statement.

As the prices of natural rubber and synthetic rubber rose this year compared to 2016, it weighed on the quarterly results, a company spokesman said over the phone.

Moreover, the costs involving the initial operation of Hankook Tire’s Tennessee plant since April also cut into the tire maker‘s profitability, he said. 

Operating profit declined 29 percent to 214.09 billion won in the third quarter from 302.64 billion won a year earlier. Sales rose 10 percent to 1.824 trillion won from 1.658 trillion won during the same period, the statement said.

In the January-October period, the tire maker’s net profit plunged 21 percent on-year to 532.20 billion won from 669.43 billion won. Operating profit declined 25 percent to 650.95 billion won on sales of 5.131 trillion won, a 2.4 percent on-year gain.

By Alex Lee and newswires (alexlee@heraldcorp.com)