The company attributed the revenue gain to a broad recovery in global demand for construction equipment and faster growth in industrial and defense engine sales. Operating profit also increased sharply as profitability improved in the construction equipment business and the engine unit delivered steady earnings.
The results come after HD Hyundai Construction Equipment and HD Hyundai Infracore launched an integrated company on Jan. 1, with the firm saying “one-team” synergies have begun to show as the market rebounds.
HD Construction Equipment said its eight-region sales structure helped it respond quickly in the market with the Hyundai and Develon brands. It also cited companywide coordination across production, sales, purchasing and research and development to strengthen cost competitiveness. The company said integrated assembly and delivery centers in Europe and North America cut delivery times by 30% and reduced costs by 20%, while its China manufacturing base was consolidated from a dual Jiangsu-Yantai setup into Yantai to improve efficiency.
By business, construction equipment revenue rose 26.9% to 1.9275 trillion won. Operating profit was 148.6 billion won, for an operating margin of 7.7%.
The engine business posted revenue of 336.1 billion won, up 10% on higher industrial engine sales and steady growth in defense engine revenue. Operating profit increased 8% to 47.3 billion won, and the operating margin was 14.1%.
An HD Construction Equipment official said the company will continue to expand construction equipment sales while diversifying profit sources, including engines and the aftermarket business.
* This article has been translated by AI.
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