▶ Sales increased by 6.2% compared to the same period last year thanks to favorable condition in advanced markets
▶ Expansion of investment in technology development… Preemptive response to strengthening environmental regulations

HD Hyundai Construction Equipment achieved solid performance in the third quarter.

HD Hyundai Construction Equipment announced on the 25th (Wed) that it recorded sales of KRW 928.7 billion and operating profit of KRW 53.8 billion in the third quarter.

Sales in the third quarter increased 6.2% compared to the same period last year. Investments have shrunk and market growth has slowed somewhat due to the continued high interest rate trend, but meaningful results have been achieved through increased sales prices and improved logistics as well as market diversification by expanding sales to emerging markets such as the Middle East and Africa.

Operating profit rate in the third quarter was 5.8%, a slight decrease of 1.4% compared to the same period last year despite the increase in sales. This is because investment in more active new market development, strengthening of technology development in accordance with environmental regulations, and new product development reflecting local customer demand has doubled compared to the same period last year.

Looking at the business performance by region, strong sales centered on the markets in North America and Europe stand out. Sales in the North American market stood at KRW 229 billion—a 40% increase compared to the same period last year—thanks to active infrastructure demand. Sales in the European market also increased 10% to KRW 113.8 billion compared to the same period last year due to increased sales in major countries such as Germany and France.

Sales from direct exports and emerging markets also continued to grow steadily, reaching KRW 357.7 billion and KRW 147 billion, respectively.

Financial soundness has improved as well due to the continued increase in performance. With steady loan repayment, debt and loan ratios were 91% and 47%, respectively, a significant improvement compared to 107% and 58%, respectively, in 2022.

HD Hyundai Construction Equipment expects the stable performance trend to continue in the fourth quarter.

In the case of advanced markets, demand for reshoring (return to the domestic market by companies operating overseas) and infrastructure-related investments is seen to continue.

In addition, in the case of emerging markets, further growth is forecast due to the recent rise in oil and coal prices, especially in resource-possessing countries.

“Our efforts to enhance brand trust through product and service strategies tailored to local customers, such as establishment of a customizing center in North America, are yielding effective results. In addition to continuous R&D efforts, we will focus on increasing sales and securing profitability by discovering dealers and strengthening our sales network,” an official from HD Hyundai Construction Equipment said.  <The End>

■ HD Hyundai Construction Equipment’s performance in the 3rd quarter of 2023(unit: KRW 100 million)