SEOUL, January 30 (AJP) - South Korea's Hyundai Rotem surpassed 1 trillion won in annual operating profit for the first time, driven by strong export contracts including K2 battle tanks for Poland.
In a regulatory filing on Friday, the company said revenue rose 33.4 percent from a year earlier to 5.84 trillion won, while operating profit surged 120.3 percent to 1.01 trillion won.
Fourth-quarter revenue increased 12.8 percent to 1.6 trillion won, and operating profit climbed 65.4 percent to 267.4 billion won.
Hyundai Rotem said growth was supported by higher production in its defense and rail businesses, reflecting strong domestic and overseas demand. The rail division ramped up output for South Korea’s high-speed rail projects, Uzbekistan’s high-speed rail system and Australia’s Queensland train program.
The defense unit saw higher sales as the company produced K2 tanks for Poland and mass-produced wheeled command post vehicles for the domestic market.
Orders rose across all business divisions, lifting Hyundai Rotem’s order backlog to 29.77 trillion won at the end of last year, up 58.7 percent, or about 11 trillion won, from a year earlier.
The rail division recorded a record 6 trillion won in new orders, including 2.2 trillion won for double-deck electric multiple units in Morocco and 424.9 billion won for a rail project in Taichung, Taiwan.
The defense unit logged 9.5 trillion won in orders, led by a second K2 tank export contract with Poland worth 8.7 trillion won. Orders at the eco-plant division totaled 516.4 billion won, down 20 percent, though the company said contracts from external customers increased, including an automated guided vehicle project at the Port of Busan.
Hyundai Rotem said its financial position remained solid.
As of the end of last year, its debt ratio stood at 206 percent, or 58.5 percent excluding advance payments. Borrowings totaled 109.9 billion won, while cash and cash equivalents amounted to 908.4 billion won, which the company said effectively supports a debt-free structure.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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