Seoul: HD Hyundai Infracore Co., the construction equipment division of HD Hyundai Group, announced a substantial 40.9 percent decrease in its net profit for the first quarter, attributing the decline to reduced demand in key markets.
According to Yonhap News Agency, the company's net profit for the three months ending in March fell to 39.9 billion won (US$27.9 million), a significant drop from the 67.6 billion won reported during the same period last year, as detailed in a regulatory filing. A spokesperson from the company noted that the delayed recovery in construction equipment demand in both Europe and North America significantly impacted the quarterly financial results.
In response to these challenges, HD Hyundai Infracore plans to introduce next-generation products to enhance its market competitiveness. The company is also focusing on improving profitability through cost-cutting measures and price adjustments for its products.
The company's operating profit also saw a decline, dropping 26.9 percent to 67.8 billion won from 92.8 billion won in the previous year. Additionally, sales decreased by 12 percent, falling to 1.01 trillion won from 1.16 trillion won. HD Hyundai Group's operations span three main sectors: construction equipment, shipbuilding, and energy development.