Sales at 3.4381 Trillion KRW, Down 10.1%
Recovery Delayed in Advanced and Emerging Markets
HD Hyundai Construction Equipment announced on the 6th that its operating profit on a consolidated basis last year was 190.4 billion KRW, a 26% decrease compared to the previous year.
Sales amounted to 3.4381 trillion KRW, down 10.1%. The company explained that operating profit also declined due to decreased sales caused by a slowdown in global market demand and increased costs for sales promotion.
Operating profit in the fourth quarter of last year was 35.3 billion KRW, up 31.4% from the same period last year. During this period, sales were 789.1 billion KRW, down 6.7%.
Looking at sales by region, India saw a 13.8% increase compared to the previous year due to government-led infrastructure investment policies. Brazil grew 24.9% by expanding its product lineup centered on small equipment.
On the other hand, advanced markets such as North America and Europe experienced continued demand slowdown, with sales decreasing by 12.5% and 16.4% respectively compared to the previous year. Emerging markets also saw a 25% decline year-on-year due to delayed purchasing power recovery amid persistent high exchange rates, high interest rates, and geopolitical risks.
HD Hyundai Construction Equipment plans to focus its capabilities on maintaining resilience through sound management and proactive risk management in preparation for this year's sluggish market conditions, while effectively expanding its competitive advantage base in anticipation of market recovery. Through this, it aims to achieve sales of 3.7473 trillion KRW and operating profit of 194.6 billion KRW.
A representative of HD Hyundai Construction Equipment said, "Based on the advanced Ulsan plant scheduled for completion in the first half of this year, we will maximize quality and production efficiency," adding, "We will strengthen competitiveness and strive to expand market share and sales by producing and supplying market-specific customized products, such as ultra-large equipment specialized for mining."
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