▶ Recorded sales of KRW 1.1082 trillion, operating income of 81.5 billion...a reduction compared to the previous year
▶ Sales for engine business rose 7%, and operating income grew 10% compared to the previous year...Profit margin of 15.8%
▶ Recovery of demand for construction equipment expected due to interest cut and expansion of infrastructure development
HD Hyundai Infracore announced on the 22nd (Mon.) that it recorded sales of KRW 1.1082 trillion and operating income of KRW 81.5 billion in the 2nd quarter of 2024.
Sales are down 15.7% compared to the same period of the previous year due to the effect of tightening of global construction equipment market. The engine business sector recorded solid earnings but saw its operating income drop 49.7% in the same period owing to the reduction in sales of construction equipment.
By business sector, both sales and operating income of the construction equipment business sector decreased compared to the previous year. Sales dropped 22% to KRW 786.3 billion compared to the previous year due to the high base effect and contraction of developed and emerging markets, with operating income standing at KRW 30.8 billion owing to the effect of sales reduction and increases in promotion and logistics costs for expanding market shares.
From the second half of the year, the market is forecast to show a recovery trend as interest rate is cut, infrastructure investment increases, and reshoring policy begins in earnest in the developed market including North America. Since investments in infrastructure development continue in the emerging markets such as Brazil and Indonesia, demand for construction equipment is expected to rise.
The engine business sector sustained solid earnings due to even growth across many different areas such as engines for industries and defense as well as material parts. Sales rose 7% to KRW 321.9 billion compared to the previous year, and operating income grew 10% to KRW 50.7 billion, with a stable double-digit operating profit margin of 15.8% maintained.
As power demands and construction infrastructure investment will increase in the future, sales and profitability of the engine business sector are expected to expand further if the demand for generator engines rises and sales of engines for defense get underway in earnest.
“The company will do its best to enhance its fundamental competitiveness by releasing new models and strengthen its business power in line with the outlook of recovery of demand for construction equipment such as expansion of infrastructure investment at the end of the year,” an official of HD Hyundai Infracore said.
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