▶ Reached KRW 1.3 trillion revenue, KRW 96.6 billion operating profit, 9.4% increase in operating profit rate
▶ Profitability increased based on NA and direct export market revenue, along with improvement in financial soundness
▶ Positive outcome expected to continue with new mini excavator release and participation in the Ukraine reconstruction project

HD Hyundai Construction Equipment (CEO: Chul-gon Choi) hit a revenue of KRW 1 trillion for two consecutive quarters. 

HD Hyundai Construction Equipment announced it’s earning on Wednesday, July 26th, which recorded KRW 1.32 trillion revenue and KRW 96.6 billion operating profit. This is a 17.9% increase in revenue and 163.2% increase in operating profit QoQ. HD Hyundai Construction Equipment also reached KRW 1.18 trillion revenue in the previous quarter. 

A near two digit increase in operating profit rate of 9.4% is especially noteworthy which was possible due to revenue growth and better logistics disruption situations. An operating profit rate exceeding 9% is the first for the company since its spin-off in 2017.

Great performance also lead to fiscal soundness. HD Hyundai Construction Equipment’s Q2 debt-to-equity ratio and borrowings ratio were each 93% and 49%, going under 100% and 50%, respectively. 

Looking by region, increased demand for earthmoving machines in developed markets including North America, and direct exporting markets including Latin America and the Middle East, were the main cause for such positive performance. 

North America broke a new record of KRW 265.6 billion in revenue this quarter, while Germany, Italy, France and other major European countries also saw a 28% rise to KRW 139.3 billion compared to the previous quarter as investments in infrastructure increased. Direct exporting markets in emerging countries recorded a revenue of KRW 364.4 billion, which is a 30% hike QoQ. 

Growth was even for each product category. Great brand presence and strong product competence led to continued solid demand in developed countries with a 71.5% increase in revenue for industrial vehicles when compared to the previous year. Construction equipment and parts businesses also saw an increase in revenue QoQ by 14.9% and 4.6%, respectively. 

HD Hyundai Construction Equipment’s stable performance is expected to continue throughout the second half of the year as investments in infrastructure and demand in mineral exploitation for secondary cells are likely to increase globally. 

HD Hyundai Construction Equipment also plans to release its new mini excavator later this year as demand for construction equipment has been increasing in developed countries and emerging countries. 

A representative of HD Hyundai Construction Equipment shared that “Despite China’s slow market recovery, our strategy to diversify markets saw great results with prominent business performance in the second quarter,” and continued, “While continuing to improve profitability, we plan to actively participate in Saudi Arabia’s NEOM project and the Ukraine reconstruction project with the other construction equipment businesses of HD Hyundai.” <EOD>

■ HD Hyundai Construction Equipment 2023 Q2 Earnings (Unit: KRW 100 million)