Hyosung Heavy Industries Achieves Record-High Results
'Restructuring' Hyosung Chemical Issues Perpetual Convertible Bonds
On October 31, Hyosung announced in a regulatory filing that, on a consolidated basis, its sales for the third quarter of this year reached 612.2 billion won, with an operating profit of 121.9 billion won. These figures represent increases of 6.0% and 157.2%, respectively, compared to the same period last year.
Hyosung stated, "Operating profit expanded due to equity-method gains from affiliates such as Hyosung Heavy Industries and improved earnings at its subsidiary Hyosung TNS," and added, "Hyosung TNS is expected to further expand its market in the fourth quarter by increasing order volumes in North America and Asia, as well as developing new customers in Europe."
By affiliate, Hyosung Heavy Industries recorded sales of 1.6241 trillion won and operating profit of 219.8 billion won, up 41.8% and 97.3%, respectively, from the same period last year. This operating profit marks the highest ever for a single quarter.
The heavy industries division achieved record-high quarterly sales and operating profit, driven by surging global demand for power equipment due to the expansion of artificial intelligence (AI) data centers and the reinforcement of renewable energy power grids.
The construction division experienced a temporary slowdown in performance last quarter due to conservative risk assessments and proactive financial measures, but recovered this quarter with operating profit surpassing that of the same period last year.
Hyosung TNC saw sales rise by 3.8% to 2.0098 trillion won, while operating profit decreased by 17.0% to 56.1 billion won.
Hyosung Chemical posted sales of 580.3 billion won, down 24.5%, and continued to record an operating loss of 26.1 billion won.
Meanwhile, Hyosung Chemical announced on the same day that it would issue perpetual convertible bonds (CB) worth 100 billion won and sell them to the holding company. This capital injection is intended to support Hyosung Chemical, which is undergoing restructuring, including asset sales.
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