"Growth in Europe and Emerging Markets... Successful Market Diversification"
HD Hyundai Construction Equipment announced on the 26th that its consolidated operating profit for the first quarter increased by 71.3% year-on-year to 80 billion KRW, driven by price increases, product mix improvement, and profitability enhancement. Sales were recorded at 1.0183 trillion KRW, up 9.2%.
Performance improved in North America, Europe, and emerging markets. The company self-assessed that it has "succeeded in market diversification." However, sales in China dropped by about half compared to the same period last year.
North American sales for the first quarter were 252.8 billion KRW, an 84% increase compared to the same period last year. North America accounted for 25% of the company's total sales, up from 15% in the first quarter of last year and 19% for the entire last year. European sales also rose by 15% year-on-year to 109.1 billion KRW due to increased local infrastructure construction demand.
In emerging markets such as India, direct exports of equipment for raw material mining increased sales by 10% year-on-year to 357.5 billion KRW. Recognizing the growing infrastructure investment by the Modi government in India, the company strengthened its local sales network, raising its market share from 14.8% last year to 18.1% in the first quarter, an increase of 3.3 percentage points. However, sales in China slowed, decreasing by 49% year-on-year.
HD Hyundai Construction Equipment expects strong performance to continue. A company official stated, "As infrastructure investment continues in advanced markets, demand for medium to large equipment will increase," adding, "By securing order backlogs in Latin America, which has high profitability, and the Middle East, where the NEOM project is underway, the company's profitability will maintain a stable level."
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