HD Hyundai Infrastructure & Construction Equipment, Thriving in Q3 with Strong Performance in US and European Markets

HD Hyundai Site Solutions' construction machinery subsidiaries, HD Hyundai Infracore and HD Hyundai Construction Equipment, continued their growth by compensating for the sluggish emerging markets in the third quarter with strong performance in advanced markets such as the United States and Europe.

HD Hyundai Infracore recorded sales of 1.0762 trillion KRW and an operating profit of 89.7 billion KRW in the third quarter of this year. Although sales decreased by 8.6%, operating profit increased by 20%. Since HD Hyundai Infracore separated from the Doosan Group in 2021 and was incorporated into HD Hyundai, its cumulative operating profit has exceeded 770 billion KRW, surpassing the 690 billion KRW acquisition cost paid by HD Hyundai Site Solutions, the intermediate holding company of HD Hyundai's construction machinery division.

In the third quarter, HD Hyundai Infracore's construction machinery sales in emerging markets including Asia, Latin America, and Africa decreased by 17%. However, sales in advanced markets increased by 12%, supported by rising demand for construction machinery in North America due to infrastructure investment and manufacturing reshoring (return of overseas companies to domestic production), as well as ongoing urban redevelopment demand in Europe. Strengthened profitability in the North American and European markets led to a 40% year-on-year growth in construction machinery division profits.

HD Hyundai Construction Equipment also posted third-quarter sales of 928.7 billion KRW and an operating profit of 53.8 billion KRW. Efforts to diversify markets by expanding sales to emerging markets such as the Middle East and Africa, price increases, and logistics improvements contributed to sales growth. However, the operating profit margin for the third quarter fell by 1.4 percentage points year-on-year to 5.8%. This was due to approximately doubling investments compared to the same period last year in more aggressive new market development, strengthened technology development in response to environmental regulations, and new product development reflecting local customer demand.

By region, strong results were achieved in the North American and European markets. Sales in the North American market increased by 40% compared to the same period last year, reaching 229 billion KRW, 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.

Financial soundness also improved. Continuous repayment of borrowings led to a reduction in debt and borrowing ratios to 91% and 47%, respectively, compared to 107% and 58% in 2022. A representative from HD Hyundai Construction Equipment stated, "Efforts to enhance brand trust through locally customized products and service strategies are yielding results," adding, "We will focus on expanding sales and securing profitability through continuous R&D efforts, dealer discovery, and strengthening sales networks."

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