▶ Recorded sales of KRW 853 billion and operating income of KRW 58.6 billion, a reduction compared to the previous year
▶ Sales grew in India and Brazil, strengthening competitiveness with lineup tailored to the regions
▶ Effect of interest reduction and promotion in the second half expected, securing future growth engine a top priority
HD Hyundai Construction Equipment announced on the 24th (Wed.) that it recorded sales of KRW 853 billion and operating income of KRW 58.6 billion in the 2nd quarter of 2024.
Sales dropped 17.4% compared to the previous year owing to the reduction of demand for new equipment due to the uncertainty of interest rate and stagnation of global construction market. Operating income was also down 39.3% during the same period due to the drop in overall sales and rise in promotion cost to increase market share, despite an improvement in profitability of the products and parts business.
When examined by region, despite having a tough time in developed markets and some emerging markets due to the contraction of the construction business, the company recorded a significant growth in sales compared to the same period of the previous year in India and Brazil.
In particular, sales in the Indian and Brazilian market—where HD Hyundai Construction Equipment is cementing its brand status as a major player—grew 22% compared to the previous year.
In India, after Prime Minister Modi’s third consecutive term was confirmed, as the government-led “National Infrastructure Construction Project” is carried out as planned, the demand for HD Hyundai Construction Equipment products competing for the no. 1 market share in the country is steadily on the rise.
In Brazil, the new product lineup of HD Hyundai Construction Equipment reflecting local needs led the growth in sales as it was in line with the demand for the development of mines and infrastructure that is currently in progress. In addition, the company is planning to strengthen further the sales network of the Latin American region, which emerged as a new market through the Chile and Mexican branch established in the first half of this year.
In the second half, the company expects developed markets such as North America and Europe to rebound gradually as interest rate is reduced, infrastructure investment increases, and reshoring policy begins in earnest.
“Since the market share in both developed and emerging markets is increasing despite the overall slowdown of performance, if interest reduction and regional promotion effects appear, we expect the improvement in business performance to gain traction. We will do our best to secure a future growth engine after a period of adjustment centered on strategic key markets,” an official of HD Hyundai Construction Equipment said.
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