HD Hyundai Construction Equipment (A267270) Q2 2024 earnings summary

Executive summary

• Sales fell 17% year-over-year in 2Q24 due to a high base in 2023 and weak market demand.

• Operating profit declined 39% year-over-year, impacted by lower sales and higher promotional expenses.

• Net profit dropped 55% year-over-year and 33% sequentially.

Financial highlights

• 2Q24 sales: KRW 853 bn (-17% YoY, -13% QoQ); operating profit: KRW 58.6 bn (-39% YoY, +9% QoQ).

• OP margin at 6.9%, down 2.5 percentage points YoY, up 1.4 points QoQ.

• Net profit: KRW 30.6 bn (-55% YoY, -33% QoQ).

Outlook and guidance

• North America and Europe: Demand expected to marginally improve in 2H24; sales to benefit from retail promotions.

• India: Infrastructure policies to support market and revenue growth.

• Brazil: Sales growth to continue via diversified product portfolio despite market headwinds.

• Emerging markets: Demand remains weak, but new branches in Chile and Mexico to support sales.