Hyundai Construction Equipment and Hyundai Doosan Infracore Achieve Record High Sales of 8 Trillion Won Last Year

"Both Companies Achieve Record High Sales...Effect of Targeting Emerging Markets"

[Asia Economy Reporter Moon Chaeseok] Hyundai Construction Equipment and Hyundai Doosan Infracore, subsidiaries of Hyundai Heavy Industries Group's construction machinery division, both achieved record-high sales last year. The combined annual sales of the two companies reached approximately KRW 8.1 trillion.

Hyundai Construction Equipment announced on the 4th that its annual sales last year increased by 35.7% compared to the previous year, reaching KRW 3.552 trillion, marking the highest sales since its establishment as an independent corporation in 2017. Operating profit rose by 98.5% year-on-year to KRW 181.8 billion. Hyundai Doosan Infracore also recorded its highest-ever sales excluding Doosan Bobcat, with KRW 4.5937 trillion in sales, a 15.2% increase from the previous year. Operating profit was similar to the previous year at KRW 264.5 billion. Combined, the two companies' sales amounted to KRW 8.1457 trillion.

The strong performance was attributed to external factors such as rising raw material prices amid large-scale economic stimulus measures implemented worldwide, as well as a multifaceted strategy including reducing dependence on China and expanding into emerging markets with region-specific approaches, according to the companies.

Hyundai Construction Equipment saw sales increase in most regions, with sales in emerging markets such as India rising 65% year-on-year to approximately KRW 1.4 trillion.

Hyundai Doosan Infracore maximized sales in emerging and advanced markets to offset the decline in the Chinese market. Sales in emerging markets and Korea increased by 51.3% year-on-year to KRW 1.6045 trillion, while sales in advanced markets such as North America and Europe rose 37.9% to KRW 1.0331 trillion. The engine division also contributed significantly, with sales increasing 22.1% year-on-year to KRW 854.8 billion. The surge in demand for construction machinery and diversification of sales channels for generators and parts influenced the results.

The companies expect sales to increase by about 4% this year to approximately KRW 8.47 trillion. They anticipate synergy effects from strategies such as cross-selling of product lineups and investment in expanding sales networks amid ongoing global economic stimulus measures.

A representative from Hyundai Genuine, the holding company for Hyundai Heavy Industries Group's construction machinery division, said, "This year will be the first year when synergy effects from integrated purchasing of products from both companies will be fully realized. We will do our best to expand our sales network through new product launches tailored to the characteristics of each region and investments to secure 'mega dealers,' and based on this, continue to generate solid profits."

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