▶ Recorded sales of KRW 979.1 billion and operating profit of KRW 53.6 billion
▶ Steady demand in emerging markets like India and Brazil; sales also growing in Latin America and Middle East.
▶ “Amid the market downturn, expanding market share is key; rapid growth expected upon demand recovery.”
HD Hyundai’s construction equipment business subsidiary HD Hyundai Construction Equipment (CEO Cheol-gon Choi) announced on April 24, 2024 (Wednesday) through a public disclosure that it recorded sales of KRW 979.1 billion and operating profit of KRW 53.6 billion for the first quarter of 2024.
Due to a general contraction in global demand for construction equipment and the high base effect from last year, sales and operating profit fell 3.8% and 33%, respectively, compared to the same period last year.
However, the company is steadily gaining market share in emerging markets by reinforcing regional dealer networks and cross-selling products, capitalizing on strong demand in these regions. This positions the company well for a swift turnaround when global demand rebounds in the second half of the year.
Regionally, the company achieved even growth across all markets except developed markets—which are relatively sensitive to interest rate fluctuations—and some direct export and China markets where sales declined due to economic sanctions.
HD Hyundai Construction Equipment's global market diversification has paid off particularly with India and Brazil—which account for 20% of total sales—seeing sales increases of 17% and 23%, respectively, year-on-year. In addition, growth continued in Latin America, Middle East, and Africa, driving HD Hyundai Construction Equipment's growth in emerging markets.
"Despite the slowdown in global equipment demand due to factors such as prolonged high interest rates and geopolitical issues, HD Hyundai Construction Equipment is gradually increasing its market share during this adjustment period. We expect to continue our rapid growth in the future when demand stabilizes thanks to our customized sales strategies by region and expansion of our product lineup," a company official said.
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