Sales of KRW 7.2234 Trillion and Operating Profit of KRW 501.9 Billion
Operating Profit Up 30.4% Year-on-Year... Record High
Management Uncertainty Rises... "Focusing on Securing Profitability"
Hyundai Glovis achieved record-high operating profit for the first quarter, posting solid results across all business sectors, including logistics, shipping, and distribution.
Hyundai Glovis CI. Provided by Hyundai Glovis
On April 30, Hyundai Glovis announced that its sales for the first quarter of this year reached KRW 7.2234 trillion, up 9.7% year-on-year, and its operating profit was KRW 501.9 billion, up 30.4% from the same period last year. The operating margin stood at 6.9%.
A Hyundai Glovis representative stated, "This is the result of focusing on profitability-driven businesses," and added, "Although the global external environment made management conditions challenging in the first quarter of this year, we responded flexibly to favorable exchange rates and leveraged systematic risk management capabilities to enhance business competitiveness, thereby achieving solid results that met market expectations."
By business segment, the logistics division recorded first-quarter sales of KRW 2.458 trillion and operating profit of KRW 198.1 billion, up 8.1% and 9.0% year-on-year, respectively. Hyundai Glovis explained that increased overseas finished vehicle sales by shippers led to higher local inland transportation revenue, and the global forwarding business also benefited from positive growth in parts import and export sales.
During the same period, the shipping division posted sales of KRW 1.257 trillion, a 9.2% increase, and operating profit of KRW 137.2 billion, up 66.3%. The company reported that the expansion of non-affiliate sales and efficient fleet management played a significant role in securing profitability.
In the distribution sector, sales reached KRW 3.5084 trillion, an 11.0% increase year-on-year, and operating profit was KRW 166.6 billion, up 38.1%. This was attributed to increased production of finished vehicles at overseas plants, which resulted in a rise in Hyundai Glovis's CKD (Completely Knocked Down) parts volume.
Hyundai Glovis predicted that global external variables would continue to increase management uncertainty in the second through fourth quarters of this year. A company representative stated, "Despite challenging domestic and international conditions, we will continue efforts to diversify sales channels through the expansion of non-affiliate business, secure profitability through rationalization of fleet operations, and establish new future growth engines," adding, "Through these efforts, we aim to exceed our annual guidance of KRW 28 trillion to KRW 29 trillion in sales and KRW 1.8 trillion to KRW 1.9 trillion in operating profit."
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