Iljin Electric has reported significant growth in both revenue and operating profit for the third quarter of this year, driven by increased global investment in power networks.
On November 11, Iljin Electric announced that its revenue for the third quarter reached 637.6 billion won, with an operating profit of 70 billion won. These figures represent increases of 41.6% and 98.3%, respectively, compared to the same period last year.
The cumulative revenue for the third quarter stands at 1.78 trillion won, marking a 24.5% increase year-on-year. During the same period, cumulative operating profit rose by 80.2% to 192.7 billion won.
Factors contributing to this strong performance include the replacement of aging power grids in the United States and the expansion of renewable energy generation in Europe. The company has seen growth not only in its heavy electrical business, including transformers and circuit breakers, but also in its wire business, with increased overseas orders.
Iljin Electric's order backlog has also surpassed 3 trillion won. As of the end of September, the company's order backlog was approximately $2.25 billion (about 3.49 trillion won), with 69% coming from the heavy electrical sector and 31% from the wire sector. Regionally, overseas orders accounted for 72%, while domestic orders made up 28%.
The company expects to maintain strong performance in the fourth quarter, as shipments of existing orders continue. It anticipates that the expansion of overseas orders in the wire business and additional large-scale project bids will support future growth.
Iljin Electric believes that potential impacts from stricter regulations on data centers in the United States will be limited. The transformers supplied by Iljin Electric for the U.S. market are ultra-high voltage transformers used in power grid construction, which differ from distribution transformers directly connected to data centers.
An Iljin Electric representative stated, "Demand for replacing aging power grids in the U.S. remains robust, and new power grid demand is expected to increase due to the expansion of renewable energy generation. Additionally, in South Korea, investments in power infrastructure are anticipated to grow, including energy highways and large-scale industrial projects, which we expect will continue to drive our growth."
* This article has been translated by AI.
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