Hyundai Doosan Infracore Q1 Operating Profit 104.9 Billion KRW, Operating Margin 9.1%

Sales of 1.1545 trillion KRW, Operating Profit of 104.9 billion KRW Recorded
Despite Decline in Sales and Operating Profit Compared to Same Period Last Year Due to Contraction in Chinese Market
Operating Profit Margin at 9% Level Driven by Increased Sales in Advanced and Emerging Markets

[Asia Economy Reporter Hwang Seoyul] Hyundai Doosan Infracore, a subsidiary of Hyundai Genuine, recorded an operating profit margin in the 9% range despite concerns over the contraction of the Chinese market.

Hyundai Doosan Infracore announced on the 27th through a public disclosure that it recorded sales of 1.1545 trillion KRW and an operating profit of 104.9 billion KRW in the first quarter of 2022. Due to the impact of the sluggish Chinese market caused by COVID-19 and other factors, sales decreased by 13.5% and operating profit by 4.5% compared to the same period last year. However, sales volume increased in advanced and emerging markets such as North America and Europe, improving profitability. Additionally, a sharp increase in external engine sales and growth in engine A/S sales led to an operating profit margin of 9.1%.

By business division, the construction machinery division showed remarkable growth in construction equipment sales in advanced and emerging markets such as North America and Europe. In advanced markets, sales increased by 32.8% year-on-year to 302.4 billion KRW due to favorable economic conditions, increased demand for housing and infrastructure construction, lineup strengthening through new product launches, and expansion of dealer networks. This accounted for 29% of total sales in the region last year.

Emerging markets such as Asia and South America also recorded sales of 438.3 billion KRW, up 3.8% year-on-year, driven by rising raw material prices and government-led economic stimulus measures.

The sales proportion of advanced and emerging markets in total sales is gradually increasing. In the first quarter of this year, the sales share of advanced markets was 33%, and emerging markets accounted for 48%. In the same period last year, these figures were 19% and 36%, respectively.

The engine division achieved an operating profit margin of 12.1%, recording an operating profit of 28.2 billion KRW and turning profitable, thanks to increased external sales of small diesel (G2) engines used in excavators, forklifts, and agricultural machinery, as well as strengthened aftermarket (A/S) services.

A Hyundai Doosan Infracore official stated, "With large-scale economic stimulus measures announced in various countries, demand for construction equipment in advanced and emerging markets is expected to expand. To mitigate uncertainties in the Chinese market, we will focus on these regions by timely launching new products and expanding sales of large models to maximize profitability."

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