HD Hyundai Construction Equipment reported second-quarter revenue of 967.7 billion won and an operating profit of 40 billion won on the 24th.
Revenue increased by 13.4% compared to the same period last year, while operating profit decreased by 31.6%. Although revenue rose due to growth in emerging markets driven by infrastructure development demand and a recovery in the Chinese market, operating profit fell due to one-time expenses of 21.3 billion won related to the restructuring of the Chinese business, HD Hyundai Construction Equipment explained.
Earlier, HD Hyundai Construction Equipment decided to suspend production at its factory in Changzhou, Jiangsu Province, in April. Following that, it announced a transition to outsourcing existing business volumes to the group company HD Hyundai Infracore's factory in Yantai, Shandong Province.
Notably, recovery in the Chinese market is evident. Thanks to the Chinese government's domestic demand stimulus policies and increased overseas orders, exports expanded, resulting in a 77% increase in revenue from China compared to the previous year. India maintained the same level as last year due to ongoing infrastructure investment initiatives.
North American revenue increased by 23% compared to the previous quarter, while Europe saw a 5% increase, indicating signs of recovery along with stabilization of demand, as noted by HD Hyundai Construction Equipment. The company plans to expand its revenue in advanced markets such as North America in the second half of the year by increasing sales of articulated dump trucks and launching new models such as skid steer loaders.
A representative from HD Hyundai Construction Equipment said, "We will expand revenue through a regionally tailored portfolio," adding, "We will also continue to strengthen our position in emerging markets and secure profitability through utilizing global production bases."