HD Construction Equipment reported second-quarter sales of 2.43 trillion won ($1.66 billion) and operating profit of 248.9 billion won. Sales rose 18 percent and operating profit jumped 92 percent from the same period last year, setting new quarterly records for the second consecutive quarter.
The strong results reflected a recovery in global construction equipment markets as well as increased sales of industrial engines supplied to data center infrastructure and defense engines. By segment, the construction equipment division posted sales of 18.2 billion won, up 22 percent year-on-year, while the engine division recorded 386.1 billion won in sales, up 5 percent. The combined operating profit margin reached 10.2 percent — the first time the company has posted a double-digit quarterly operating margin since its launch as an integrated entity.
In the construction equipment segment, next-generation excavator models introduced last year proved popular in advanced markets including North America and Europe as well as in South Korea. Sales of higher-margin mid- to large-sized mining equipment rose in Latin America. Markets that had previously been sluggish, including China and India, also showed improvement.
In the engine segment, shipments of industrial engines and defense engines for the K2 main battle tank increased.
"Our sales strategy focused on next-generation models and high-margin products paid off alongside the global market recovery," a company official said. "We will diversify our business portfolio — including strengthening our presence in the defense and power-generation markets through the new engine factory in Gunsan — to build a broader foundation for growth."
klee@heraldcorp.com
