HD Hyundai's power equipment and energy solutions affiliate HD Hyundai Electric(267260) disclosed on the 28th that it posted consolidated sales of 1.1418 trillion won and operating profit of 287.0 billion won in the second quarter.
Second-quarter sales rose 26% from the second quarter of last year, while operating profit increased 37.3% in the same period.
The second-quarter operating margin was 25.1%, up 2.0 percentage points from a year earlier.
HD Hyundai Electric said the power equipment business has been steadily growing as moves to replace power grids and build new power infrastructure, centered on the United States, continue.
A company representative said, "Second-quarter power equipment business sales grew 10.7% year over year on sustained global demand for power grid replacement and expanded overseas sales of high-voltage circuit breakers."
Second-quarter distribution equipment sales were 231.2 billion won, up 20.2% from the second quarter of last year. With increased supplies for domestic semiconductor projects, sales rose across all product lines in the distribution institutional sector.
Second-quarter orders totaled $1.44 billion, up 44.6% from the second quarter of last year.
As of the second quarter, the order backlog was $8.49 billion, up 29.6% from the same period last year.
An HD Hyundai Electric representative said, "In addition to the structurally growing power equipment business, profitability in the distribution equipment business has improved significantly, delivering solid results," adding, "As power demand centered on data centers is translating into orders for distribution and rotating equipment, we expect to maintain stable growth in the second half."
Meanwhile, HD Hyundai Electric disclosed the same day that it will pay a quarterly cash dividend of 1,300 won per common share. The total dividends aggregates 46.8 billion won, with a record date of Aug. 12 and a scheduled payment date of Aug. 27.