Hyundai Rotem reported an 11% decline in operating profit for the third quarter, despite an increase in revenue from its rail business.
On October 19, Hyundai Rotem announced that its consolidated revenue for the third quarter reached 1.6207 trillion won, with an operating profit of 247.1 billion won. While revenue increased by 0.1% compared to the same period last year, operating profit fell by 11%.
The company's core rail segment saw third-quarter revenue rise to 656.1 billion won, a 21.4% increase year-on-year. However, operating profit in this segment decreased by 16.9% to 5.9 billion won.
In contrast, the defense and plant sectors experienced overall declines. Revenue in the defense, robotics, and hydrogen (AD&RH) segment fell by 10.1% year-on-year to 841.2 billion won, with operating profit decreasing by 10.5% to 236 billion won. This decline was attributed to the completion of deliveries for the initial contract of K2 tanks, which impacted some revenue. The plant (EP) segment reported revenue and operating profit of 123.4 billion won and 5.2 billion won, respectively, marking decreases of 13.6% and 24.6% compared to the previous year.
As of the end of the third quarter, the order backlog stood at 29.142 trillion won, down 1.2626 trillion won from the end of the second quarter (30.4046 trillion won). The rail segment accounted for the largest portion of this backlog at 19.031 trillion won. In the third quarter, Hyundai Rotem secured contracts worth 344.5 billion won for the Taoyuan Brown Line project in Taiwan and 310.3 billion won for maintenance of electric trains for the Land Transport Authority (LTA) in Singapore. The order backlog for the defense, robotics, and hydrogen (AD&RH) segment was 9.5228 trillion won, while the eco-plant (EP) segment had a backlog of 588.2 billion won.
* This article has been translated by AI.
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