HD Construction Machinery said Monday that it recorded revenue of 2.0915 trillion won and an operating profit of 157.7 billion won in the third quarter of this year.
Based on the combined results of HD Hyundai Construction Machinery and HD Hyundai Infracore for the same period last year, revenue increased by 6.1% and operating profit rose by 23.9% compared to the previous year.
HD Construction Machinery, the integrated entity formed from HD Hyundai Construction Machinery and HD Hyundai Infracore, was launched in January of last year.
By business segment, the construction machinery division recorded revenue of 1.6235 trillion won and an operating profit of 109.9 billion won.
While the Middle East and Africa regions underperformed due to ongoing geopolitical uncertainties, sales of medium- and large-sized products continued in other regions as demand for infrastructure and mining investments persisted. Additionally, profitability improved as revenue from high-margin parts increased through the strengthening of the aftermarket business.
Revenue in advanced markets, including North America and Europe, grew by 4% compared to the same period last year. Sales in Europe declined due to a slump in the residential construction market, but sales of next-generation new models and truck products increased in North America. Expanding demand in the equipment rental market also supported revenue growth.
Revenue in the Commonwealth of Independent States (CIS), Southeast Asia, and Oceania regions increased by 30.2% compared to the same period last year, driven by the supply of locally tailored products. Sales of ultra-large construction machinery rose in the CIS, while sales of small construction machinery increased in Australia and New Zealand.
In the Indian market, revenue grew by 26.6% compared to the same period last year as sales of small excavators and wheel loaders increased due to expanded government-led infrastructure investment. The Latin American market also grew by 26.8%, maintaining a stable growth trend as mining demand expanded.
The engine business division recorded revenue of 394 billion won and an operating profit of 55.2 billion won. Sales of generator engines increased due to expanding power demand from data centers. In addition, sales of industrial engines rose as the global construction machinery industry recovered. The company maintained a 14% operating profit margin through a sales strategy focused on high-profitability products.
HD Construction Machinery plans to produce megawatt (MW)-class diesel engines for generators at its Gunsan new factory, which is nearing completion, starting next year. Along with this, the company plans to expand the large gas engine line at its Incheon plant to respond to the rapidly growing demand for data center generator engines, centered on North America.
An official from HD Construction Machinery stated, "Through profitability-focused business operations, we were able to achieve solid operating profit despite recent declines in exchange rates." The official added, "Going forward, we will strengthen our next-generation new models and locally tailored construction machinery product lines, while expanding our offensive in the data center generator engine market based on the Gunsan new factory to continue our growth momentum."
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