2 weeks Ago By Korea Bizwire
This file photo provided by HD Hyundai Electric Co. shows its U.S.
subsidiary in Alabama. (Yonhap) SEOUL, April 22 (Korea Bizwire) — HD Hyundai Electric Co., a South Korean electrical equipment maker, said Tuesday its first-quarter net profit jumped 64 percent from a year earlier on strong demand for its products in the United States.
Net profit for the three months ended March 31 rose to 153.4 billion won (US$107.9 million) from 93.
4 billion won in the same period last year, the company said in a regulatory filing. “The net result received a boost from robust demand for our transformers and circuit breakers in the U.S.
market, as well as our strategy of selectively securing orders focused on high-end products,” a company spokesperson said. He added that demand in the U.S.
for those products will likely continue to grow due to replacement needs and increasing investments in artificial intelligence (AI)-related infrastructure, despite uncertainties surrounding U.S. tariffs.
In the first quarter, the company secured US$1.34 billion worth of orders and had an order backlog of $6.16 billion.
Operating profit also soared 69.4 percent to 218.2 billion won in the January-March period from 128.
8 billion won a year earlier, the filing showed. Sales jumped 26.7 percent on-year to 1.
01 trillion won in the first quarter. It marked the first time ever HD Hyundai Electric reported quarterly sales of more than 1 trillion won. In 2024, the company had secured $3.
81 billion worth of orders, surpassing its annual target of $3.74 billion. This year, it aims to win $3.
82 billion worth of orders and post sales of 3.89 trillion won. To proactively respond to rising demand for its ultra-high-pressure transformers, the company plans to invest a combined 396.
8 billion won in its production facilities — 211.8 billion won for its domestic plant in Ulsan, 305 kilometers southeast of Seoul, and 185 billion won in its U.S.
plant in Alabama. The company also operates another domestic plant that produces medium- and low-pressure circuit breakers. “Based on expanded production facilities, we will diversify our export markets and pursue new opportunities in the U.
S., Europe and Asia,” the company spokesperson said. (Yonhap).
