▶ Hyundai Construction Equipment records sales of KRW 3.552 trillion in 2021…the highest sales since its founding
▶ Hyundai Doosan Infracore also posts all-time high sales of KRW 4.5937 trillion
▶ Sales forecast of KRW 8.47 trillion for 2022 by expanding investment in lineup cross-sales networks
Hyundai Construction Equipment and Hyundai Doosan Infracore, affiliates of the Hyundai Heavy Industries Group’s construction equipment division, recorded combined annual sales of KRW 8.1 trillion—which are historically high for both companies—in 2021.
On February 4 (Fri.), both companies announced their annual results including the fourth quarter of 2021.
Hyundai Construction Equipment announced that its annual sales in 2021 increased 35.7% to KRW 3.552 trillion compared to the previous year, recording the highest sales since it became an independent corporation in 2017. Likewise, operating profit increased 98.5% to KRW 181.8 billion compared to the previous year.
Hyundai Doosan Infracore also announced that its annual sales in 2021 increased 15.2% to KRW 4.5937 trillion, the highest ever recorded excluding Doosan Bobcat. Operating profit was KRW 264.5 billion, similar to the previous year.
The strong performance of the two companies was attributed to external factors such as large-scale economic stimulus measures by countries worldwide and rising raw material prices as well as region-specific strategies including reducing the proportion of China and expanding emerging markets.
In the case of Hyundai Construction Equipment in particular, while sales in most regions increased from the previous year, the company focused on emerging markets such as India and saw sales increase 65% to KRW 1.4 trillion compared to the previous year; thus leading to the highest performance in the company history.
Hyundai Doosan Infracore also compensated for the decline in sales in China by maximizing sales in emerging and advanced markets. Sales in emerging and Korean markets increased 51.3% to KRW 1.6045 trillion compared to the previous year. On the other hand, sales in advanced markets such as North America and Europe increased 37.9% to KRW 1.0331 trillion.
The engine business division saw positive results as well, with sales up 22.1% to KRW 854.8 billion compared to the previous year thanks to a surge in demand for construction equipment and diversification of generators and parts sales.
The prospects for both companies’ performance for 2022 are also bright. This year, the two companies' sales are forecast to increase by about 4% to KRW 8.47 trillion compared to 2021 based on expectations of continued economic stimulus measures worldwide and synergies from lineup cross-selling and investment in expanding sales networks.
“2022 will be the first year when the synergy effects of the two companies will be fully realized through integrated purchases. We will do our best to continue making solid profits by launching new products and expanding the sales network through investment to secure mega dealers,” a Hyundai Genuine official said.