HD Hyundai Infracore Q2 Operating Profit Up 29%... Recovery in Construction Equipment Demand
Sales Reach KRW 1.1846 Trillion, Up 6.9%
Expansion of High Value-Added Product Sales
HD Hyundai Infracore, a construction equipment affiliate of HD Hyundai, recorded growth in both sales and operating profit in the second quarter of this year. The recovery in global demand for construction equipment and the expansion of high value-added product sales drove the improvement in performance.
On July 23, HD Hyundai Infracore announced in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally estimated at KRW 105.8 billion, up 29.8% from the same period last year. Sales increased by 6.9% to KRW 1.1846 trillion. Sales returned to growth for the first time in seven quarters, and operating profit rose by 56% compared to the previous quarter.
By business segment, the construction equipment division led the improvement in performance. Construction equipment sales rose by 9% year-on-year to KRW 857.4 billion. As global demand showed a moderate recovery, infrastructure investment and resource development demand increased in emerging markets such as Southeast Asia, Africa, and Central and South America, resulting in higher sales of medium and large equipment. Profitability also improved accordingly.
Sales in the Chinese market showed a recovery as increased infrastructure investment, real estate stimulus policies, and equipment replacement demand coincided. Advanced markets such as North America and Europe also saw a slight increase in sales due to improved demand following interest rate cuts.
The engine division maintained a stable performance. Second-quarter sales increased by 2% year-on-year to KRW 327.1 billion, while operating profit rose by 32% to KRW 67.2 billion. Sales growth was driven by engines for generators and eco-friendly ships, while engines for defense applications maintained solid results based on steady demand. A portfolio strategy centered on high-margin products and price increases also contributed to improved profitability.
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A representative from HD Hyundai Infracore stated, "At a time when the overall business environment is bottoming out, our proactive response strategies have led to improved performance," adding, "In the second half of the year, we will continue to pursue solid, profitability-focused growth through a sales strategy centered on high value-added product lines."
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