HD Hyundai Infracore Q1 Operating Profit 152.6 Billion KRW... Up 45.5% YoY

Sales increased by 11.6% to 1.2878 trillion won

HD Hyundai Infracore announced on the 24th through a public disclosure that its operating profit for the first quarter increased by 45.5% compared to the same period last year, reaching 152.6 billion KRW. Sales revenue also rose by 11.6% over the same period, recording 1.2878 trillion KRW.

HD Hyundai Infracore explained that sales increased thanks to growth in emerging markets as well as advanced markets such as North America and Europe, which has continued since last year. The company stated that operating profit also increased as the engine business recovered double-digit operating profit margins along with price hikes and profitability improvements.

Looking at the construction machinery business performance, sales in emerging markets increased by 25% compared to the same period last year due to rising demand centered on resource-rich countries such as the Middle East, the Commonwealth of Independent States (CIS), and Latin America. Specifically, sales in advanced markets increased by 14.3% due to expanded infrastructure and rental demand and the effect of new orders through lineup diversification.

HD Hyundai Infracore pointed out that despite a 52% decrease in sales in the Chinese market due to an economic downturn compared to the same period last year, overall sales increased thanks to successful diversification of sales regions. In fact, the proportion of China in total sales sharply dropped from 45.5% in 2020 to 9% in this first quarter. Meanwhile, advanced markets grew from 22.7% to 35% during the same period, and emerging markets also increased from 17% to 56%.

In the engine business sector, sales increased by 32.5% year-on-year to 307.1 billion KRW due to rising engine demand in areas such as generators, industrial use, vehicles, and defense. Operating profit rose by 75.4% to 49.4 billion KRW. The company explained that it recovered double-digit operating profit margins (16.1%) due to price increases, volume growth, and product mix improvement effects.

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