Thanks to the Exchange Rate Effect... Hyundai Mobis 1Q Operating Profit Up 30% YoY

Operating Profit 542.7 Billion KRW... Solid Performance Due to Exchange Rate Effect
Sales 13.8 Trillion KRW... 5% Decrease YoY

Hyundai Mobis's operating profit for the first quarter of this year increased by nearly 30% compared to the same period last year. Although sales declined during the same period due to stagnation in the finished car market, the company posted solid results thanks to a favorable exchange rate.

Hyundai Mobis announced on the 26th that it recorded sales of KRW 13.8692 trillion and operating profit of KRW 542.7 billion for the first quarter of this year. Sales decreased by 5.4% compared to the same period last year, but operating profit increased by 29.8%. Net profit also rose by 2.4% during the same period.

The overall finished car market, including electric vehicles, stagnated, leading to a decrease in sales volume. However, operating profit showed an upward trend due to a favorable exchange rate and increased demand in the A/S parts business.

Specifically, sales in the module and core parts business amounted to KRW 10.9374 trillion, down 9.1% from the same period last year. This is attributed to a decrease in finished car volume and electric vehicle production. Hyundai Mobis explained, "In particular, in the electrification sector, since the end of last year, the procurement method for battery cells of newly launched models has shifted from direct purchase to finished car consignment, resulting in a change in accounting treatment and exclusion from sales. Although sales in the electrification sector have somewhat slowed, we expect profit margins to gradually normalize."

The A/S parts business recorded sales of KRW 2.9318 trillion, driven by increased demand in the Americas (+11.1%) and Europe (+10.3%). Despite various geopolitical issues such as logistics impacts from the Israel-Palestine conflict, the company responded appropriately to the expanding market demand.

Meanwhile, Hyundai Mobis achieved order intake of USD 810 million from global customers in the first quarter of this year. A Hyundai Mobis official stated, "We secured orders for integrated charging control units (ICCU) for electric vehicles and in-vehicle infotainment (IVI) products in the Asian and North American markets, respectively, and are expanding our influence in the electrification sector. Based on this, Hyundai Mobis aims to achieve an order intake target of USD 9.33 billion this year and maximize shareholder value through various shareholder return policies, including share buybacks and cancellations."