Hyundai Mobis posted an operating profit of 802.6 billion won in the first quarter, up about 3% from a year earlier. The module and core parts manufacturing business failed to return to the black, but high value-added products such as electronic components and after-sales service (AS) parts helped keep overall results on a growth track.
Hyundai Mobis said on the 24th that, on a consolidation basis, first-quarter operating profit came to 802.6 billion won. That is up 3.3% from a year earlier but falls somewhat short of the 843.0 billion won securities consensus (average forecast) compiled by FnGuide.
Revenue rose 5.5% to 15.5605 trillion won, while net profit fell 14.4% to 883.1 billion won.
A Hyundai Mobis official said, "Increased sales to overseas carmakers and a larger supply of high value-added products centered on electronic components drove overall results," adding, "The AS parts business, which benefited from favorable exchange rates, also contributed to growth as global demand remained strong."
However, despite a 4.9% rise in sales in the module and core parts manufacturing business, it failed to turn an operating profit. A Hyundai Mobis official said, "Overall demand in the global car market declined, and initial expenses for new European plants to mass-produce key electrification components—such as the Slovakia PE system (electrified powertrain) plant that began full-scale mass production in the first quarter and the Spain battery system (BSA) plant slated to start operations this year—had an impact."
Hyundai Mobis plans to execute 2 trillion won in research and development (R&D) investment this year to respond to the future mobility market. A Hyundai Mobis official said, "Alongside companywide efforts to improve revenue, gradual performance improvement is expected as various new models from clients are scheduled for launch this year."