HD Hyundai Infracore Q1 Operating Profit Down 39.2%... Sales Down 10.1%

HD Hyundai Infracore announced on the 19th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 92.8 billion KRW, a 39.2% decrease compared to the first quarter of last year.

Sales amounted to 1.1573 trillion KRW, down 10.1% from the same period last year. Net profit decreased by 39.9% to 67.6 billion KRW. HD Hyundai Infracore explained that the decline in sales was influenced by the tightening of the global construction machinery market. Operating profit shrank due to a decrease in construction machinery sales despite solid performance in the engine business segment.

In particular, due to the base effect from last year and simultaneous sluggishness in both advanced and emerging markets, sales in the construction machinery segment recorded 848.1 billion KRW, down 13% from the same period last year, and operating profit fell 55% to 45.8 billion KRW. However, HD Hyundai Infracore noted that despite the global market tightening, there were positive rebound trends in key countries within the market.

In advanced markets such as North America and Europe, retail sales increased through new product launches, cross-selling of affiliate products, and promotions by strategic dealers, resulting in a rise in market share. In the South Korean and Chinese markets, a gradual recovery is expected as they rebound after hitting bottom. The Southeast Asia and Oceania regions achieved results exceeding market profitability through sales activities at regional bases, such as discovering key customers for the Indonesian corporation and strengthening the dealer network in Australia.

HD Hyundai Infracore plans to establish a sales corporation in Mexico in the second half of this year to expand its market share in the Latin American region. The engine business segment showed balanced growth across products including industrial, defense, and material components. Sales recorded 309.3 billion KRW, a 1% increase from the previous year, while operating profit was 47.0 billion KRW, a 5% decrease. A representative from HD Hyundai Infracore stated, "Construction machinery demand deferred due to high interest rates is expected to recover in the second half, and stable sales growth of generator engines for North American data centers and emerging markets, as well as defense engines, is anticipated. We will maximize profitability by strengthening dealer network competitiveness, expanding product lines, and increasing sales of ultra-large construction machinery."