Hyundai Rotem Reports Q2 Operating Profit of 15.8 Billion KRW, Down 38% YoY (Comprehensive)

[Asia Economy Reporter Jeong Hyunjin] Hyundai Rotem announced on the 21st that its consolidated sales for the second quarter of this year were tentatively estimated at 710.7 billion KRW, an 8.2% increase compared to the same period last year. Operating profit for the second quarter was 15.8 billion KRW, and net profit was 14.3 billion KRW, down 38.4% and 41.4% respectively from the same period last year.

For the first half of the year, sales reached 1.3641 trillion KRW, and operating profit was 41.6 billion KRW, representing increases of 3.0% and 11.5% respectively compared to the second quarter of last year. Orders received in the first half amounted to 1.0028 trillion KRW, a 24% decrease year-on-year, and the order backlog also fell 6% to 8.7563 trillion KRW.

By business division, the Rail Solution division's first half sales increased 9% year-on-year to 778.8 billion KRW, but operating profit decreased 33% to 12.5 billion KRW. Although sales increased due to order backlog and productivity improvements, profit declined due to penalties incurred from rail re-testing and test delays.

In the Defense Solution division, first half sales rose 24% year-on-year to 423.7 billion KRW, and operating profit increased 36% to 28.1 billion KRW. During the second quarter, new orders in the Defense Solution division totaled 703.4 billion KRW (cumulative), a 98% increase compared to 354.6 billion KRW in the second quarter of last year. This is attributed to the large-scale projects recently awarded by the Defense Acquisition Program Administration, including overhaul of K1 and K1A1 tanks, and K-1 recovery and bridge tanks.

The Eco Plant division's first half sales decreased 24% compared to the second quarter of last year to 161.6 billion KRW, but operating profit turned positive at 1 billion KRW. The improvement in profit is believed to be due to the absence of new orders in the loss-making EPC business within the Eco Plant division.

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