HD Hyundai Infracore announced on the 25th (Wed) that it recorded sales of KRW 1.0762 trillion and operating profit of KRW 89.7 billion in the third quarter of 2023. Sales decreased 8.6% compared to the same period last year, whereas operating profit increased 20%.
Compared to the high performance in the same period last year, sales in the construction equipment division decreased due to sluggish markets in Asia such as Korea, China, and Southeast Asia. Accordingly, sales in emerging markets including Korea, Asia, Central and South America, and Africa decreased 17% compared to the same period last year.
On the other hand, sales in advanced markets including North America and Europe grew 12% as the North American market continued to grow in the wake of investment in infrastructure and reshoring of manufacturing companies, and demand for urban redevelopment in Europe continued with stable sales recorded centered on small equipment.
Despite declining sales and increased costs, operating profit in the construction equipment division grew 40% compared to the same period last year following increased selling prices and strengthened profitability in North America, Europe, and emerging markets.
In the engine business division, external sales of vehicle materials and parts and defense engines began in earnest, and despite the high base of the previous year, sales decreased 5% to KRW 283.7 billion—maintaining the previous year's level—whereas operating profit increased 2% to KRW 39.4 billion. Operating profit ratio remained a double-digit figure at 14% as a result of the increase in sales price and improvement in product portfolio.
HD Hyundai Infracore expects the industrial and defense engine division to grow next year and the gas power generation market in North America to expand.
“Despite the global trend of retrenchment, demand for construction equipment in emerging markets including North America and resource countries is growing steadily. We will gradually expand our market share in these regions through customized strategies for each region,” an official from HD Hyundai Infracore said.
Regarding the engine business, he added, “We will do our best to secure mid- to long-term growth engines by increasing external sales for engines—including full-scale sales of engines for defense equipment—and by supplying engines to affiliates within the group to create synergy.” <The End>