Seoul: HD Hyundai Electric Co., a South Korean electrical equipment manufacturer, announced a substantial 64% increase in its first-quarter net profit, driven by strong demand in the United States. The company's net profit for the three months ending March 31 rose to 153.4 billion won (US$107.9 million), up from 93.4 billion won in the same period last year, as per their regulatory filing.
According to Yonhap News Agency, the significant profit growth was attributed to robust demand for HD Hyundai Electric's transformers and circuit breakers in the U.S. market, alongside a strategic focus on securing high-end product orders. A company spokesperson highlighted that the demand in the U.S. is expected to continue growing due to replacement needs and increasing investments in AI-related infrastructure, despite uncertainties surrounding U.S. tariffs.
In the first quarter, HD Hyundai Electric secured orders valued at US$1.34 billion and maintained an order backlog of $6.16 billion. The company's operating profit also increased markedly by 69.4%, reaching 218.2 billion won in the January-March period, compared to 128.8 billion won in the previous year.
Sales for the first quarter surged by 26.7% year-on-year to 1.01 trillion won, marking the first time the company reported quarterly sales exceeding 1 trillion won. Looking ahead, the company aims to achieve $3.82 billion worth of orders and post sales of 3.89 trillion won in 2024, having already surpassed its annual target for orders in the previous year.
To address the rising demand for ultra-high-pressure transformers, HD Hyundai Electric plans to invest a total of 396.8 billion won in its production facilities, including 211.8 billion won for its plant in Ulsan, South Korea, and 185 billion won for its U.S. plant in Alabama. The company also operates a second domestic plant producing medium- and low-pressure circuit breakers.
The spokesperson further stated that with expanded production facilities, HD Hyundai Electric plans to diversify its export markets and explore new opportunities in the U.S., Europe, and Asia.