HD Hyundai Infracore Reports Q1 Operating Profit of 67.8 Billion KRW, Down 27% Year-on-Year

Sales Down 12% to 1.0185 Trillion KRW
Profitability Improves Compared to Previous Quarter
Engine Division Operating Margin at 16%

HD Hyundai Infracore announced on April 24 that, on a consolidated basis, its provisional operating profit for the first quarter of this year was 67.8 billion KRW, a decrease of 27% compared to the same period last year.

Revenue was 1.0185 trillion KRW, down 12%. However, the company explained that the operating margin improved to 6.7% compared to the previous quarter, thanks to a profitability-focused strategy.

By business segment, the construction equipment division posted sales of 753.1 billion KRW, an 11% decrease year-on-year, and operating profit of 23.6 billion KRW, down 48%. The company attributed the decline in performance to delayed demand recovery in advanced markets such as North America and Europe. However, it noted that the Chinese market has grown for four consecutive quarters, and that demand is gradually recovering in some emerging markets such as Southeast Asia and Africa. The company stated that these trends are laying the foundation for improved profitability and a rebound in performance going forward.

In the engine business division, amid shrinking demand due to the global economic slowdown, sales stood at 265.4 billion KRW, a 14% decrease year-on-year, while operating profit was 44.2 billion KRW, down 6%. Sales of generator engines maintained a stable trend, supported by increased power demand in North America and emerging markets. In addition, the company reported that sales of large electronic and gas generator engines, as well as defense engines, are increasing, raising expectations for continued growth in the future.

An HD Hyundai Infracore representative stated, "We plan to launch next-generation new models to secure differentiated product competitiveness and target advanced markets," adding, "We will do our utmost to strengthen profitability by reducing promotion costs, cutting fixed costs, and raising sales prices."