Hyundai Construction Equipment Turns Profitable in 4Q 2022: "Strong Performance in North America and Emerging Markets"

Operating Profit of 170.6 Billion KRW Last Year

[Asia Economy Reporter Kim Pyeonghwa] Hyundai Construction Equipment, a subsidiary of HD Hyundai's construction machinery division, announced on the 6th that it recorded an operating profit of 24.1 billion KRW in the fourth quarter of last year, turning profitable compared to the same period the previous year. Sales in the fourth quarter of last year increased by 10.1% to 833.4 billion KRW.

The full-year operating profit last year rose by 6.2% year-on-year to 170.6 billion KRW. Sales amounted to 3.5156 trillion KRW, a 7% increase compared to the previous year.

Hyundai Construction Equipment improved its performance last year by stably building its sales portfolio through a market diversification strategy. Demand for mining construction equipment increased due to expanded infrastructure investment and rising raw material prices, leading to growth in global unit sales. Sales increased in both advanced markets such as North America and emerging markets such as Latin America, offsetting the decline in China, a major market. Operating profit also increased due to mix improvement activities by raising sales prices and differentiating lineups by region and product.

A Hyundai Construction Equipment official said, "With continued raw material demand in North America, where non-residential construction is active, and emerging markets, we expect strong performance to continue this year." He added, "We will enhance profitability through price increases and expansion of sales of ultra-large equipment." Hyundai Construction Equipment plans to achieve sales in the 3.8 trillion KRW range this year by launching new products and strengthening its sales lineup.