Hyundai Wia Q2 Operating Profit 53.1 Billion KRW... Up 17.6% YoY

Sales Decreased by 0.4% Compared to the Same Period Last Year

[Asia Economy Reporter Kiho Sung] Hyundai Wia's sales in the second quarter of this year amounted to 1,971.8 billion KRW, a 0.4% decrease compared to the same period last year. However, operating profit grew by 17.6% to 53.1 billion KRW, and net profit surged by 420.8% to 199.7 billion KRW. The market had expected operating profit to decline compared to the previous year, but it instead rose significantly.

Hyundai Wia disclosed this information on the 26th through the Financial Supervisory Service's electronic disclosure system.

By segment, vehicle parts posted second-quarter sales of 1,773 billion KRW and operating profit of 51.5 billion KRW, representing decreases of 0.6% and 13.2% respectively compared to the same period last year. On the other hand, the machinery division recorded sales of 198.8 billion KRW and operating profit of 1.6 billion KRW, with sales increasing by 1.1% year-on-year and operating profit turning positive.

A Hyundai Wia official stated, "The slight decline in sales compared to the same period last year was due to a decrease in finished vehicle sales caused by raw material supply shortages. Additionally, the continued suspension of operations at the Russian subsidiary also had a negative impact."

However, sales of the high value-added four-wheel drive (4WD) system continued to perform well, and the increase in foreign exchange gains due to a high exchange rate led to the sharp rise in operating profit and net profit.

The machinery division saw increased sales volumes in both general-purpose machines and factory automation (FA) equipment as the manufacturing economy showed signs of recovery. By implementing a "fair pricing" strategy for general-purpose machines and reducing long-term inventory, the division focused on improving operating profit margins, successfully turning a profit. The machinery division has maintained profitability in the second quarter following the first quarter of this year.

Hyundai Wia expects positive performance trends to continue into the third quarter. A Hyundai Wia official said, "Sales of sport utility vehicles (SUVs) continue to perform well, driving increased sales of the high value-added 4WD system. Furthermore, with the gradual resolution of raw material supply shortages, vehicle sales themselves are expected to increase." He added, "The machinery part is also expected to see continued recovery in the manufacturing sector, with both general-purpose machines and FA equipment anticipated to show improved performance."

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