Hyundai Construction Equipment Records KRW 3.5T Revenue,

KRW 170B Operating Profit

▶ Market diversification strategy succeeds resulting in improved revenue amid sales drop in Chinese market

▶ Profitability enhanced with higher selling price and better line-up mix contributing to 6.2% increase in operating profit

▶ “Strong NA·EM market momentum expected in 2023”

Hyundai Construction Equipment (CEO: Choi Cheol-gon), a subsidiary of HD Hyundai’s Construction Equipment business, announced on Monday, Jan 6, that they recorded a revenue of KRW 3.5 trillion and operating profit of KRW 170 billion in 2022. This is a 7.0% increase in revenue and 6.2% increase in operating profit YoY.

For Q4 alone, it recorded a turnover with KRW 833 billion in revenue and KRW 24 billion in operating profit YoY.

Hyundai Construction Equipment pointed out that the main reason for such good performance in 2022 was mainly due to the stable sales portfolio created through its market diversification strategy.

In fact, revenue increased in developed markets such as North America, and emerging markets such as Latin America, as investments in infrastructure and raw material prices rose, resulting in more demand for mining equipment and offsetting the decline in one of the key markets, China.

For emerging markets, construction equipment sales grew mainly in resource-rich countries while demand for mining equipment were remained stable in Latin America. This resulted in a revenue increase of 32.2% to KRW 1.83 trillion YoY. Performance also improved in North America, Europe and other developed markets with a revenue of KRW 645.6 billion and KRW 446.5 billion, respectively.

Efforts to expand profitability also worked positively. Amid an increase in material and shipping costs worldwide, a better mix of product line-up by region·country contributed to the growth in operating profit.

A representative of Hyundai Construction Equipment mentioned that “A strong market momentum is expected to continue with the consistent demand for raw materials in North America and emerging markets where many non-residential construction projects are being conducted,” and added, “We plan to enhance profitability by raising selling prices and expanding sales of super-large equipment.”

Meanwhile, Hyundai Construction Equipment forecasted that the current growth momentum will continue and reach a revenue of KRW 3.8 trillion with their new product launches and stronger sales line-up this year. <EOD>