HD Construction Machinery shares initially plummeted over 12% during trading but later reduced their losses to about 1% following the release of its second-quarter earnings report.
As of 2:11 PM on July 29, HD Construction Machinery was trading at 120,900 won, down 1,900 won (1.55%) from the previous trading day. The stock had fallen to as low as 107,100 won earlier in the session, marking a decline of more than 12%, but began to recover after the earnings announcement around 1:20 PM.
In its earnings report, HD Construction Machinery announced consolidated sales of 2.4342 trillion won and an operating profit of 248.9 billion won for the second quarter of this year. Compared to the same period last year, sales increased by 18.2%, and operating profit surged by 92.0%. The operating profit margin reached 10.2%, marking the first time the company achieved a double-digit operating profit margin on a quarterly basis since the establishment of the consolidated entity.
Sales in the construction machinery segment totaled 2.0182 trillion won, a 22% increase year-on-year. Strong sales of next-generation excavators contributed to an 18% rise in North America and a 25% increase in Europe, with consistent growth observed in key regions including Latin America, the Middle East and Africa, India, and China. The operating profit margin improved from 4.6% last year to 9.9% this year.
The engine segment also saw a 5% increase in sales, reaching 386.1 billion won, driven by expanded external sales of industrial engines and increased supply of defense engines for K2 tanks, achieving an operating profit margin of 15.3%.
Looking ahead, HD Construction Machinery plans to maintain a profitability-focused sales strategy in the second half of the year while strengthening its response to the defense and power generation markets based on its new engine plant in Gunsan, thereby expanding its growth base.
* This article has been translated by AI.
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