HD Hyundai Infracore Reports Operating Profit of 184.2 Billion KRW Last Year, Down 56% YoY (Comprehensive)

Operating Profit in Construction Equipment Division Plunges 90% Amid Global Downturn
Advanced Markets in North America and Europe See Significant Declines

HD Hyundai's construction equipment affiliate, HD Hyundai Infracore, announced on the 4th that its consolidated operating profit for last year was 184.2 billion KRW, a 56% decrease compared to the previous year.

Sales amounted to 4.1142 trillion KRW, down 11.7% from the previous year. Net profit fell 53% to 108.4 billion KRW.

In the fourth quarter of last year, the operating loss was 10.9 billion KRW, turning to a deficit. During this period, sales were 938.9 billion KRW, down 11.7% year-on-year, but net profit turned positive at 3.2 billion KRW.

HD Hyundai Infracore explained that the decrease in operating profit was due to a decline in construction equipment sales and increased variable costs such as promotional and logistics expenses. Sales also declined due to the prolonged tightening in the global construction equipment market.

By business segment, the construction equipment division's operating profit last year plunged 90% year-on-year to 27.5 billion KRW. Sales also dropped about 15% to 2.9723 trillion KRW.

In the engine division, sales last year were 1.1419 trillion KRW, down 2% from the previous year, but operating profit increased by about 3% to 156.6 billion KRW.

By region, advanced markets underperformed in North America and Europe. Sales in North America and Europe decreased by 25% compared to the previous year, and their share of total sales also dropped by about 5 percentage points to 36%. On the other hand, sales in emerging markets including China slightly increased by about 2%.

HD Hyundai Infracore expects the global construction equipment market this year to see a rebound in advanced markets such as the U.S. and Europe, which will extend to emerging markets, setting sales and operating profit targets at 4.8 trillion KRW and 233.5 billion KRW, respectively.

In particular, North America, the largest market for construction equipment, is expected to see a full-scale improvement in performance as early as the second half of the year due to expanded infrastructure investment and reshoring policies following the presidential election.

Europe is forecasted to experience a gradual demand recovery with interest rate cuts and increased demand for new products. Emerging markets are also expected to see more active government-led infrastructure investment centered on resource-rich countries starting in the second half of the year.

An HD Hyundai Infracore official said, "As political and economic uncertainties in major countries including the U.S. are gradually resolved, infrastructure investment promotion and gradual recovery in construction equipment demand will be driven," adding, "We will do our best to secure preemptive competitiveness in preparation for the market turnaround by launching next-generation new models and investing in future new businesses."

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