Hyundai Mobis posts near-1-trillion-won operating profit in Q2 on electronics, A/S strength

Hyundai Mobis said Friday that both sales and operating profit grew in the second quarter, driven by expanded supply of high-value automotive electronics components and solid performance in its after-sales service business.

The company posted second-quarter sales of 16.32 trillion won ($11.1 billion) and operating profit of 975.2 billion won, up 2.4 percent and 12.1 percent, respectively, from a year earlier. Net profit for the period rose 13.5 percent year-on-year to 1.06 trillion won.

On a first-half cumulative basis, Hyundai Mobis recorded sales of 31.89 trillion won and operating profit of 1.78 trillion won, up 3.9 percent and 8.0 percent, respectively, from the same period last year.

The company attributed the earnings gains to an improved product mix and company-wide profitability initiatives. Electrification segment sales edged down due to lower production volumes at some automaker customers, and memory chip cost pressures persisted, but higher sales to overseas automakers and expanded supply of high-value electronics components offset those headwinds. After-sales parts also maintained solid performance, supported by growth in global sales and favorable exchange rates.

Hyundai Mobis invested 950.8 billion won in research and development in the first half to secure core technologies for future mobility. That figure represents about 44 percent of its full-year R&D investment plan of 2.16 trillion won.

The company is also stepping up efforts to diversify its global customer base, intensifying component order activities targeting major automakers in North America, Europe and Asia. In the first half of this year, it secured $740 million in orders from global customers.

"In the first half, some orders were delayed due to project schedule adjustments stemming from changes in customer strategies and a slowdown in electrification market growth," a Hyundai Mobis official said. "We plan to focus on securing initial orders for new products and new customers to improve order quality and actively expand additional order opportunities."

The company set its interim dividend for this year at 1,500 won per share, with a record date of Aug. 10. It also purchased about 910,000 treasury shares worth a total of 500 billion won between May and July, all of which are scheduled to be canceled in August. Hyundai Mobis said it will continue to strengthen shareholder returns through dividend expansion and share buyback and cancellation.