Hyundai Mobis Q2 Operating Profit 168.7 Billion KRW... 73.1% Decrease YoY

[Asia Economy Reporter Kiho Sung] Hyundai Mobis reported an operating profit of 168.7 billion KRW in the second quarter of this year, a 73.1% decrease compared to the same period last year. This was directly affected by the global automotive market shutdown due to the impact of the novel coronavirus disease (COVID-19).

On the 24th, Hyundai Mobis announced through electronic disclosure that it recorded sales of 7.5355 trillion KRW, operating profit of 168.7 billion KRW, and net profit of 234.7 billion KRW. Compared to the same period last year, sales decreased by 20.4%, operating profit and net profit decreased by 73.1% and 63.6%, respectively.

The decline in performance was largely influenced by the global production decrease and shutdown of finished car dealers due to COVID-19. In fact, during this period, sales in the module and core parts business division decreased by 19.6% despite a 50.1% increase in sales of electrification parts, which have been recently growing. Sales in the A/S parts business division also decreased by 23.4%. Despite the decrease in sales, operating profit fell more sharply due to continuously incurred fixed costs and increased ongoing development expenses.

In the first half of the year, Hyundai Mobis achieved orders worth 547 million USD through new technology and new product orders targeting European and North American electric vehicle companies. However, due to the impact of COVID-19, some order schedules targeting global finished car makers were postponed, and the expected order amount for this year was forecasted at 1.7 billion USD.

Hyundai Mobis explained that it is strengthening order activities by resuming postponed order projects in the first half, mainly focusing on large customers in the North American region.

A Hyundai Mobis official stated, “Given the ongoing uncertainty and potential prolongation of COVID-19, we plan to continue proactive liquidity management and efficiency improvement in the second half of the year,” adding, “We will respond to the post-COVID-19 era by defending profitability through cost reduction, optimizing overseas production bases, and expanding production bases for electrification parts.”

This content was produced with the assistance of AI translation services.