CBI Continues Earnings Growth in Q3... "Expecting Concurrent Expansion in Scale and Profitability"

[Asia Economy Reporter Jang Hyowon] CBI, a KOSDAQ-listed company, continued its consecutive profits in the third quarter following the second quarter. CBI announced that it recorded sales of 8.2 billion KRW and an operating profit of 1.1 billion KRW on a separate basis in the third quarter. Compared to the same period last year, sales increased by approximately 78%, and operating profit turned positive.

The solid performance of CBI in the third quarter is attributed to the fact that more than half of the total sales in its core business area, the internal combustion engine division, were directly exported to overseas markets. Additionally, the demand growth rate for parts of HDEP and MDEG engines supplied to global customers such as Germany's Daimler Truck AG and the United States' Detroit Diesel (DDC) reached an all-time high, coupled with profitability improvements due to the strong dollar.

The company stated, “This year’s annual sales are expected to reach an all-time high due to supply price normalization, strong export performance, and favorable exchange rate effects,” adding, “We anticipate growth based on profitability by securing cost competitiveness including efficient production.”

Furthermore, by combining its casting and processing technologies, CBI supplies essential parts for agricultural machinery engines to K-brand agricultural machinery specialized companies such as Daedong, TYM, and LS Mtron, which are performing well in overseas markets. Recently, due to the Russia-Ukraine war issues and rising prices, demand for agricultural machinery parts has soared to an all-time high, and along with the growth of the agricultural machinery market, a mutually complementary sales increase effect with related customers is expected to continue.

A CBI representative said, “Cumulative sales for the third quarter reached approximately 25.1 billion KRW, exceeding 91% compared to the same period last year, and the achievement of this year’s sales target in the 30 billion KRW range is within sight. This is expected to surpass the target and mark the best performance since the company’s founding,” adding, “We are strengthening the internal foundation of the automotive material parts division, which requires strict quality and management capabilities. Based on this, not only continuous sales growth but also new businesses currently underway, such as launching electric commercial vehicles and developing eco-friendly vehicle parts, are expected to gain further momentum within a stable financial structure.”