'K2 Export' Defense Sales 900 Billion 'Profit Maker'
"Expecting Continued Order Growth from Poland, Peru, and Others"
Hyundai Rotem achieved record-high sales and operating profit for the second quarter, driven by its strong performance in 'K-Defense'.
Hyundai Rotem announced on the 26th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 112.8 billion KRW, a 67.7% increase compared to the same period last year. Sales reached 1.0945 trillion KRW, up 10.9% year-on-year. This is the first time quarterly sales have surpassed 1 trillion KRW. Net profit rose 91.9% to 100.8 billion KRW.
By business segment, Defense Solutions sales increased 19% year-on-year to 882.5 billion KRW. Rail Solutions sales declined 12% to 667.8 billion KRW. Eco Plant sales surged 77% compared to the second quarter of last year, reaching 292 billion KRW.
The operating profit margin for the second quarter was 10.3%, marking the first time it entered the double-digit range.
The operating profit and sales for the second quarter represent the highest quarterly performance since the company's founding in 1977. The previous quarterly record was sales of 989.2 billion KRW and operating profit of 69.8 billion KRW in the fourth quarter of last year.
Order intake increased while the debt ratio decreased, securing a stable fundamental financial position. The order backlog for the first half of the year rose 14% year-on-year to 18.9915 trillion KRW.
Jung Dong-ik, a researcher at KB Securities, said, "The delivery volume of K2 tanks is expected to increase from 56 units this year to 96 units next year, so quarterly performance is likely to continuously break record highs."
There is also a possibility of a second contract for K2 tanks with Poland. Researcher Jung stated, "With the completion of follow-up contracts for the K9 self-propelled howitzer and K239 multiple rocket launcher, the likelihood of a second K2 tank contract with Poland has increased. Since April, we have also exported wheeled armored vehicles to Peru for the first time, so future order contracts are expected to increase."
The debt ratio also decreased, falling from 223% at the end of 2022 to 218% at the end of last year, and 178% at the end of the first half of this year. This was influenced by a reduction in borrowings from 1.1488 trillion KRW to 581.4 billion KRW and then to 409.7 billion KRW over the same period.
A Hyundai Rotem official said, "The increase in deliveries of K2 tanks to Poland contributed to record-high sales and operating profit in the second quarter."
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