Hyundai Mobis, a leading auto parts manufacturer and an integral affiliate of Hyundai Motor Group, announced robust financial results for the first quarter of this year. The company demonstrated resilient performance, successfully navigating challenging global economic conditions, including weakening international demand and geopolitical tensions in the Middle East.
According to the detailed earnings report released on Friday, Hyundai Mobis achieved significant growth from January to March. Its operating profit saw a commendable 3.3 percent year-on-year increase, reaching 802.6 billion won ($540.9 million). Concurrently, sales revenue climbed by 5.5 percent over the same period, totaling 15.56 trillion won, underscoring strong Q1 financial performance.
The positive performance of Hyundai Mobis was primarily fueled by an increase in orders from diverse non-affiliated global automakers. This growth was further bolstered by expanded shipments of high-value automotive electronics, a key strategic area for the company. Additionally, favorable exchange rates provided a significant boost to its thriving after-sales parts business.
However, the module and core components manufacturing division, which is currently benefiting from substantial investments aimed at driving future growth, presented a mixed picture. While this division reported a 4.9 percent rise in revenue, it continued to experience operating losses during the quarter.
Hyundai Mobis attributed the pressure on profitability to two main factors: a general slowdown in global demand and the initial costs associated with new strategic ventures. These include its Slovakia-based Power Electric system plant, which commenced mass production of crucial EV powertrain components in the first quarter, and the upcoming Battery System Assembly plant in Spain.
A Hyundai Mobis official emphasized the company’s forward-looking strategy, stating, “Despite prevailing challenging business conditions, we are committed to strengthening our competitiveness in the rapidly evolving future mobility markets. This year, for the first time, we plan to invest over 2 trillion won in research and development (R&D), while also vigorously pursuing various measures to enhance overall profitability.”
Furthermore, in line with its mid- to long-term shareholder return policy, unveiled last year, Hyundai Mobis plans to execute a buyback and cancellation of 500 billion won worth of its treasury shares this year. Subject to board approval, the company also aims to maintain its dividend at the previous year’s level of 6,500 won per share, demonstrating a strong commitment to shareholder value.
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