Hyundai Glovis(086280) said in a filing on the 23rd that operating profit on a consolidation basis in the second quarter of this year was provisionally tallied at 495.1 billion won, down 8.1% from the same period a year earlier.
Revenue came to 8.7054 trillion won, up 15.8% from the same period, while net profit was 369.2 billion won, down 26.7%.
By business institutional sector, operating profit in the logistics business institutional sector was 191.8 billion won, down 5.9% from the same period. Revenue was 2.8558 trillion won, up 10.3% over the same period.
Hyundai Glovis said revenue increased as non-affiliate business and inland transport volume in North America grew, but operating profit fell as contract freight rates declined.
In the shipping business, it posted second-quarter operating profit of 130.9 billion won, a decrease of 34.6% from the same period a year earlier. Over the same period, revenue rose 20.9% to 1.6441 trillion won.
Hyundai Glovis said revenue increased as volumes from non-affiliates such as local Chinese finished car manufacturers (OEMs) grew, but profitability was limited due to higher oil prices.
It added that finished car ocean transport volume remains solid, and that operating profit, which temporarily declined due to the expense being reflected up front, is expected to recover gradually once freight compensation proceeds in the second half.
The distribution business institutional sector recorded second-quarter operating profit of 172.3 billion won, up 27.8% from the same period a year earlier. Revenue rose 17.9% to 4.2055 trillion won.
The company said strong results were helped by the full-fledged start of semi-knockdown (CKD) exports to technology-support assembly plants in emerging countries and growth in the trading business due to increased volumes of nonferrous metals.
Chief Executive Lee Gyu-bok of Hyundai Glovis said on a conference call that "we were temporarily affected on the expense side by higher fuel costs due to the fallout from the war between the United States and Iran, but revenue continues to grow, including recording the highest-ever quarterly revenue," adding, "we are proving our path to achieving 40 trillion won in revenue by 2030."