On the 4th (Tuesday), HD Hyundai Infracore announced that it recorded 2024 annual sales of KRW 4.1142 trillion and an operating profit of KRW 184.2 billion.

Sales figures decreased by 11.7% year-on-year due to the prolonged market contraction in global construction equipment, while operating profit declined by 56% year-on-year due to a fall in construction equipment sales and higher variable costs, such as marketing and logistics expenses.

The Construction Equipment Business Unit logged drops in both sales and operating profit. Its sales amounted to KRW 2.9723 trillion due to the delay in interest rate cuts and continued sluggish demand in advanced markets such as North America and Europe, while operating profit fell significantly year-on-year due to marketing expenses for sales promotion and higher product development and logistics costs.

While a slowdown in demand is likely to continue for the time being, HD Hyundai Infracore plans to strengthen its localized lineup and expand its sales network with a focus on cementing its regional market position further.

The Engine Business Unit had a slight decrease in sales year-on-year, but maintained a double-digit operating profit margin with greater profitability from differentiated product supply by country and region.

The Engine Business Unit is forecast to continue its growth with steady product demand based on robust sales trends in existing markets and expansion into new markets. Recently, HD Hyundai Infracore has made a KRW 140-billion investment in engine plant facilities to establish a mid- to long-term growth driver for defense and ultra-large power generation engines, and eco-friendly battery packs.

This year, a rebound in the global construction equipment market is forecast for advanced markets, such as the US and Europe, with a spillover effect to emerging markets. In North America, the largest market for construction equipment, full-scale performance improvement is forecast as early as the second half of the year due to expanded infrastructure investments and reshoring policies after the presidential election in the US. In Europe, a gradual recovery in demand is likely to occur in tandem with interest rate cuts and increased demand for new products. In emerging markets with relatively high uncertainty, government-led infrastructure investment is also forecast to become more active from the second half of the year, especially in resource-rich countries.

An HD Hyundai Infracore official said, “Politicaland economic uncertainties in major countries, including the US, will resolve in stages, leading to an influx of infrastructure investment and gradual recovery of construction equipment demand,” and added, “We will remain committed to driving preemptive competitiveness aimed at market turnaround points, such as the launch of next-generation new models and investments in future-driven

new businesses.”

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