CBI Achieves Operating Profit Turnaround in Q1... "Expecting Continued Performance Growth"

[Asia Economy Reporter Jang Hyowon] CBI succeeded in turning its operating profit positive in the first quarter of this year. On the 16th, CBI announced that it recorded sales of 7.9 billion KRW and an operating profit of 430 million KRW on a separate basis in the first quarter. Compared to the same period last year, sales increased by about 39%, and operating profit turned positive.

After implementing a physical division and relocating the casting plant last year, CBI established a governance structure that enables swift and clear decision-making, while promoting strategic allocation of management resources and maximizing management efficiency. Additionally, after negotiating supply price adjustments due to the sharp rise in raw material prices caused by global uncertainties, profitability improved in existing business sectors.

CBI has been striving for stable growth in its existing automotive business division and further strengthening competitiveness in commercial trucks, construction machinery, and agricultural machinery parts by maintaining close cooperation with major clients such as Daimler Truck AG, Hyundai Doosan Infracore, GM Global, and Daedong. Meanwhile, the parent company’s parts demand has significantly recovered and even shown an increasing trend, leading to continuous company-wide improvement activities such as enhancing productivity of major production lines and diversifying purchasing sources to reduce costs.

A CBI official stated, “The operating rates of major parts production lines have already recovered to normal levels, with some lines approaching their limits. We are continuously pursuing efforts to secure profitability and improve our business structure, thereby strengthening the foundation of the automotive parts business division, which demands strict quality and management capabilities.” He added, “Furthermore, we plan to maximize synergy with the existing commercial vehicle parts business by enhancing capabilities in future new business sectors such as ECV and UAM through cooperation with our subsidiary ‘Coasis,’ securing future growth engines.”

He continued, “The expected sales for this year are projected to grow by about 20% compared to the previous year, considering only the existing automotive parts business.”

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