Module and Core Component Business Sales Increase by 8.6% Year-on-Year
[Asia Economy Reporter Kim Ji-hee] Hyundai Mobis announced on the 29th that it recorded sales of 9.9916 trillion KRW and an operating profit of 598.3 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 5.8%, while operating profit decreased by 0.9%.
However, compared to the second quarter, sales and operating profit increased by 32.6% and 254.6%, respectively, showing a recovery trend. Hyundai Mobis explained, "Despite difficult conditions such as the contraction of global automobile demand and a decrease in vehicle production due to the impact of COVID-19, the third-quarter performance has returned to a recovery trend through profitability improvement."
Sales in the module and core parts business division increased by 8.6% compared to the same period last year. The increase in sales of electrification parts, which have recently been growing, and the expansion of parts supply to mid-to-large and sports utility vehicle (SUV) models drove the performance.
In particular, sales in the electrification business division in the third quarter of this year exceeded 1 trillion KRW for the first time in a quarter, reaching 1.2462 trillion KRW. This is a 77% increase compared to the same period last year. The cumulative sales of the electrification division up to the third quarter this year reached 2.9384 trillion KRW, approaching 3 trillion KRW.
Hyundai Mobis continued to secure orders for core parts from automakers in China, Europe, and North America, recording a cumulative global order amount of 1.283 billion USD in the third quarter. The order achievement target for this year is 1.7 billion USD. Although there are difficulties such as delays in order schedules for overseas customers due to the impact of COVID-19, Hyundai Mobis plans to continue active sales activities based on the competitiveness of core parts quality.
A Hyundai Mobis official said, "Although uncertainty in the business environment continues due to the impact of COVID-19, we were able to defend our performance through continuous profitability improvement activities such as production efficiency improvement and cost reduction," adding, "We will overcome the current crisis and lead the global market by establishing a flexible and efficient organizational structure in preparation for the post-COVID-19 era."
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