Hyundai Mobis Reports Strong Q1 Performance... Electrification Sales Up 76%

Hyundai Mobis recorded strong performance in the first quarter of this year, driven by increased vehicle production and rising sales of electrification parts. Sales of core parts and electrification parts in the first quarter increased by 21% and 76%, respectively, compared to the previous year.

On the 26th, Hyundai Mobis announced that it posted sales of KRW 14.667 trillion, operating profit of KRW 418.1 billion, and net profit of KRW 841.8 billion in the first quarter of this year. Compared to the same period last year, sales increased by 29.7%, while operating profit and net profit rose by 8.1% and 61.6%, respectively.

The easing of global semiconductor supply issues and the expansion of module and core parts production and supply led to the sales growth. In particular, the increase in production of electrification parts applied to eco-friendly vehicles had a significant impact. The expanded supply of high value-added core parts applied to mid-to-large and sports utility vehicles (SUVs) also contributed to the sales increase. Operating profit continued to rise compared to the same period last year due to the overall easing of logistics cost burdens and the global demand expansion in the A/S business.

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Looking in detail, sales of electrification parts reached KRW 3.327 trillion, a remarkable 76.4% increase compared to the same period last year. With the increase in global production of eco-friendly vehicles such as hybrid and electric vehicles, Hyundai Mobis’s supply of core electrification parts like PE systems and battery systems is expected to continue growing.

Sales of core parts amounted to KRW 2.526 trillion, up 21.1% year-on-year. Module products recorded sales of KRW 6.183 trillion, a 24.0% increase. Alongside this, the A/S parts business achieved an 11% sales increase to KRW 2.631 trillion due to strong demand in major global markets.

Hyundai Mobis set its global order target for overseas automakers at USD 5.36 billion this year. The cumulative order performance through the first quarter was USD 660 million, achieving 12% of the annual plan in just the first quarter. Hyundai Mobis stated its goal to simultaneously strengthen profitability and product competitiveness by continuing aggressive order activities.

A Hyundai Mobis official said, "Along with active investments for future growth, we will implement various shareholder return policies, including the planned KRW 150 billion share buyback and cancellation this year," adding, "We will strive to maximize shareholder value."

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