HD Hyundai Construction Equipment announced on the 24th through a public disclosure that it recorded sales of 853 billion KRW and an operating profit of 58.6 billion KRW in the second quarter of this year.
Sales decreased by 17.4% compared to the same period last year due to reduced demand for new equipment amid interest rate uncertainties and a global construction market downturn. Despite improvements in profitability in the product and parts business, operating profit also fell by 39.3% during the same period due to overall sales decline and increased promotional expenses aimed at expanding market share.
By region, the company struggled in advanced markets such as Europe and some emerging markets due to the contraction in the construction industry, but recorded significant sales growth in India and Brazil compared to the same period last year.
In particular, sales in the Indian and Brazilian markets, where HD Hyundai Construction Equipment is solidifying its brand position as a key market, grew by 22% compared to the same period last year.
In India, following Prime Minister Modi’s confirmation of a third term, the government-led 'National Infrastructure Construction Project' is progressing as planned, steadily increasing demand for HD Hyundai Construction Equipment’s products, which are competing for the top local market share.
In Brazil, HD Hyundai Construction Equipment’s new product lineup, reflecting local demand, has driven sales growth by aligning with the currently active mining and infrastructure development demand. Additionally, through the Chile and Mexico branches established in the first half of this year, the company plans to further strengthen its sales network in the emerging Latin American market.
In the second half of the year, advanced markets such as North America and Europe are expected to show gradual recovery as interest rate cuts, expanded infrastructure investments, and reshoring policies take effect.
An HD Hyundai Construction Equipment official stated, "Despite the overall performance slowdown, market share is expanding in both advanced and emerging markets, and we expect performance improvement to accelerate as interest rate cuts and regional promotional effects materialize." He added, "We will do our best to secure future growth engines after the adjustment period, focusing on strategic core markets."
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