HD Hyundai Infracore Q3 Operating Profit 89.7 Billion KRW... 20% Increase

Strengthening Profitability in Advanced and Emerging Markets
Operating Profit Grows 20% Year-on-Year

HD Hyundai Infracore announced on the 25th through a public disclosure that it recorded sales of 1.0762 trillion KRW and an operating profit of 89.7 billion KRW in the third quarter of 2023. While sales decreased by 8.6% compared to the same period last year, operating profit increased by 20%.

Sales in the construction machinery division declined compared to the third quarter of last year due to sluggish performance in Asian markets such as Korea, China, and Southeast Asia. Sales in emerging markets including Asia, Latin America, and Africa also dropped by 17%. On the other hand, sales in advanced markets including North America and Europe increased by 12%, supported by continued growth in the North American market driven by infrastructure investment and manufacturing reshoring, as well as ongoing urban redevelopment demand in Europe.

Operating profit in the construction machinery division grew by 40% year-on-year despite sales decline and increased costs, thanks to price hikes and strengthened profitability in North American, European, and emerging markets. The engine business division maintained sales at 283.7 billion KRW, similar to the previous year, and operating profit increased by 2%. The operating profit margin recorded 14%, maintaining double digits due to price increases and improvements in the product portfolio.

HD Hyundai Infracore expects growth in the industrial and defense engine sectors and expansion of the North American gas power generation market next year. A representative from HD Hyundai Infracore stated, “Despite the global economic tightening trend, demand for construction machinery in North America and resource-rich emerging markets remains robust,” adding, “We will gradually expand our market share in these regions through region-specific tailored strategies.” Regarding the engine business, the representative also said, “We will do our best to secure mid- to long-term growth engines by fully commercializing defense engine sales, increasing external engine sales, and creating synergy by supplying engines to affiliates within the group.”

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