HD Hyundai Construction Equipment Reports 14% Decrease in Q3 Operating Profit to 53.8 Billion KRW

Sales Increased by 6.2% but Operating Profit Decreased
"Due to Approximately Double the Investment Expansion"

HD Hyundai Construction Equipment announced on the 25th that it recorded sales of 928.7 billion KRW and an operating profit of 53.8 billion KRW in the third quarter.

Third-quarter sales increased by 6.2% compared to the same period last year. Efforts such as market diversification by expanding sales to emerging markets like the Middle East and Africa, price increases, and logistics improvements led to the sales growth. However, the operating profit margin for the third quarter was 5.8%, down 1.4 percentage points from the same period last year. This was due to approximately doubling investments compared to the previous year in more aggressive new market development, strengthening technology development in response to environmental regulations, and developing new products reflecting local customer demand.

Looking at business performance by region, good results were achieved in the North American and European markets. Sales in the North American market reached 229 billion KRW, a 40% increase from the same period last year, driven by active infrastructure demand. Sales in the European market also improved by 10% year-on-year to 113.8 billion KRW through expanded sales in major countries such as Germany and France. Direct exports and emerging markets also achieved sales of 357.7 billion KRW and 147 billion KRW respectively, maintaining steady growth.

Financial soundness also improved. Due to steady repayment of borrowings, the debt and borrowing ratios improved to 91% and 47%, respectively, compared to 107% and 58% in 2022.

HD Hyundai Construction Equipment expects the stable performance trend to continue into the fourth quarter.

For advanced markets, reshoring (the return of overseas companies to the domestic market) and infrastructure-related investment demand are expected to continue. A representative of HD Hyundai Construction Equipment said, “Efforts to enhance brand trust through local customer-tailored products and service strategies, such as establishing a North American customizing center, are yielding effective results,” adding, “We will focus on expanding sales and securing profitability through continuous R&D efforts, as well as dealer discovery and strengthening the sales network.”

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