HD Hyundai Infracore's Operating Profit Reaches 418.3 Billion KRW Last Year, Up 26% YoY

North America and Europe Sales Increase... Continued Growth in Generators, Industrial, and Defense Sectors
Operating Profit Expected at 445 Billion Won This Year... "Focusing on Strengthening Market Position"

HD Hyundai Infrastructure Core, an affiliate of HD Hyundai Construction Equipment Division, announced on the 2nd that it achieved an operating profit of 418.3 billion KRW last year. This represents a 25.8% increase compared to 2022.

HD Hyundai Infrastructure Core reported sales of 4.6596 trillion KRW and an operating profit of 418.3 billion KRW last year. Sales decreased by 2% compared to 2022. A company official explained, "We increased operating profit by supplying locally customized products and selecting high-profit products by region, as well as raising selling prices."

Looking at the construction equipment business, the increase in sales in the North American and European markets offset the decline in emerging markets and the Korean and Chinese markets. Operating profit increased by 28.5% through efforts to improve profitability and price increases.

In North America and Europe, sales increased by 12.8% compared to the previous year. The sales share of the construction equipment business also rose by 7 percentage points (p) to 41% compared to the previous year. The emerging markets saw sales decline by 2.9% year-on-year due to weakness in Asia. The Chinese market continued to be affected by the real estate downturn, with sales decreasing by 55.3% compared to the previous year.

The engine business segment recorded sales of 1.1616 trillion KRW, an 11.9% increase year-on-year, driven by external engine demand in generators, industrial use, and defense sectors. The operating profit margin reached double digits.

Fourth-quarter sales were 981.6 billion KRW, down 20.6% from the fourth quarter of 2022, and operating profit was 14 billion KRW, down 78.9%. The decline was concentrated in the Asian and European construction equipment markets and one-time costs such as brand replacement expenses.

HD Hyundai Infrastructure Core expects the global construction equipment market to go through a correction phase and shift to a recovery trend from the end of this year. The company set sales targets of 5.02 trillion KRW and operating profit of 445 billion KRW for this year.

At a board meeting held that day, the company resolved to pay a cash dividend of 110 KRW per common share for last year. The total dividend amount is 22 billion KRW. It also resolved to repurchase and cancel treasury shares worth 56 billion KRW. Including cash dividends and treasury share repurchase and cancellation, the total amounts to 78 billion KRW, a 63% increase from last year’s dividend amount of 47.9 billion KRW.

A company official said, "We will continue to generate solid profits by launching new products tailored to regional characteristics and expanding our dealer network. Based on these profits, we will make greater efforts to enhance shareholder value."