Hyundai Mobis achieved double-digit operating profit in the second quarter of this year, driven by the expansion of high-value automotive component sales and strong performance in its afterservice (A/S) business.
On July 24, Hyundai Mobis announced in a regulatory filing that it recorded sales of 16.3247 trillion won and an operating profit of 975.2 billion won for the second quarter. Sales increased by 2.4% compared to the same period last year, while operating profit rose by 12.1%. Net profit for the period was 1.0602 trillion won, up 13.5% year-on-year.
The improvement in performance was attributed to a better product mix and profitability enhancement strategies. Although sales in the electrification sector declined due to reduced production of finished vehicles and ongoing cost pressures from memory semiconductors, Hyundai Mobis explained that the expansion of high-value automotive component supply to overseas automakers helped offset these losses. The A/S business also saw improved profitability due to increased global sales and favorable exchange rates.
For the first half of the year, Hyundai Mobis reported cumulative sales of 31.8852 trillion won and an operating profit of 1.7778 trillion won, representing increases of 3.9% and 8%, respectively, compared to the same period last year. During this time, the company secured parts orders worth $740 million from overseas automakers.
Hyundai Mobis continues to invest in securing future growth drivers. In the first half of the year, the company invested 950.8 billion won in research and development (R&D), which accounts for about 44% of its annual investment plan of 2.1631 trillion won.
A Hyundai Mobis official stated, "In the first half, some orders were delayed due to project schedule adjustments following changes in client strategies and a slowdown in the electrification market. However, we focused on securing initial orders for new products and new clients, achieving positive results. We plan to actively expand additional order opportunities in the second half of the year."
Meanwhile, Hyundai Mobis has decided on an interim dividend of 1,500 won per share, with the dividend record date set for next month on the 10th. From May to July, the company repurchased approximately 910,000 shares worth 500 billion won, which will be fully canceled in August.
* This article has been translated by AI.
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