HD Hyundai Infracore Posts Earnings Surprise, Retires Treasury Shares; Eyes North America Rebound

[Korea Financial Times, Shin Haeju] HD Hyundai Infracore has once again exceeded market expectations by posting an earnings surprise in the second quarter, following its strong performance in the first quarter. With the ongoing post-war reconstruction demand and easing tariff uncertainties, the company is forecasting a positive earnings trend in the latter half of this year.

On the 23rd, HD Hyundai Infracore announced in its earnings conference call that it recorded consolidated sales of KRW 1.1846 trillion and operating profit of KRW 105.8 billion in the second quarter of this year. Compared to the same period last year, sales increased by 7% and operating profit jumped by 30%.

A company official cited improved profitability across all regions except North America as the main factor behind the robust results.
Sales returned to growth year-on-year for the first time in seven quarters, mainly thanks to recovering demand in key regions. Europe, including the UK and Italy, showed a particularly notable sales recovery. The rise in operating profit was attributed to reduced promotional expenses and increased sales of medium and large-sized products in emerging markets.

Cheon Jong-ho, Managing Director of IR at HD Hyundai Infracore, said, "The recovery in North American sales has been somewhat delayed," adding, "As tariff and interest rate uncertainties are expected to ease in the second half, a rebound is anticipated."

The company plans to respond in the North American market by leveraging its existing inventory. "Our North American dealers are not short on inventory," an official said. "If cross-border tariff rates are finalized on Aug. 1, we will raise product prices by about 3% between September and November after monitoring competitors, with another price hike likely at the end of the year."

Looking ahead, HD Hyundai Infracore is also strengthening its network to prepare for reconstruction demand once the Russia-Ukraine war ends.

"Although the war is prolonging beyond expectations, it will eventually come to an end," a company official remarked. "We are actively building relationships with government agencies through our Ukrainian subsidiary to respond to reconstruction demand."

On the back of the upbeat earnings report, HD Hyundai Infracore shares closed at KRW 13,230 on the day, up 18.76% from the previous session. Previously, market analysts had projected that HD Hyundai Infracore’s operating profit for Q2 would decline by 5.17% year-on-year, leading the company’s stock to fall over a three-day period from July 16 to 18.

HD Hyundai Infracore, which is set to merge with HD Hyundai Construction Equipment on January 1 next year, will see its shares suspended from trading starting December 29.

Separately, regarding the share buyback and cancellation announced earlier this year, an HD Hyundai Infracore official said, "We have completed the repurchase of 3,739,794 self-owned shares worth KRW 31.4 billion," noting, "With the board's approval for the cancellation on this day, we plan to cancel the shares on August 6."


Shin Haeju (hjs0509@fntimes.com)