Hyundai Construction Equipment Reports Q2 Operating Profit of 70.7 Billion KRW, Up 68% Year-on-Year

[Asia Economy Reporter Suyeon Woo] Hyundai Construction Equipment announced on the 22nd that it recorded sales of 952.6 billion KRW and an operating profit of 70.7 billion KRW in the second quarter of this year. These figures represent an increase of approximately 43% and 68%, respectively, compared to the same period last year.

With this, Hyundai Construction Equipment achieved an operating profit of 150.4 billion KRW in the first half alone, surpassing last year's full-year operating profit of 91.6 billion KRW, marking a strong performance.

Looking at sales by division, the construction equipment division recorded sales of 755.8 billion KRW, up 46.3% year-on-year, driven by continued growth in emerging and domestic markets and demand recovery in advanced markets. The industrial vehicle division posted sales of 125.1 billion KRW, an increase of 26.5% compared to the previous year, due to increased demand in North America and emerging markets.

Hyundai Construction Equipment cited the increase in construction equipment demand due to rising global raw material prices as a factor for achieving second-quarter results, with sales significantly increasing in emerging markets such as Russia and Latin America. In India, despite adverse conditions caused by the reimplementation of lockdowns, sales rose 174% year-on-year, leading to a successful performance rebound. Advanced markets also supported the results as demand recovery accelerated with expanded vaccination efforts, and stable sales growth continued in the domestic market.

Hyundai Construction Equipment holds a positive outlook for the third quarter and the second half of this year. It expects public projects led by the Chinese government to resume from the second half, and the rise in raw material prices along with economic recovery expectations are anticipated to continue driving demand growth in emerging markets such as Russia and Latin America.

A Hyundai Construction Equipment official stated, "Although sales in the Chinese market slightly decreased due to the Chinese government's adjustment of the economic stimulus pace in the second quarter, demand is increasing evenly in domestic, emerging, and advanced markets, so the outlook for the second half's performance is positive."

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