Seoul: Hyundai Mobis Co., the auto parts arm of Hyundai Motor Group, announced a significant increase in its first-quarter operating profit, which surged 43.1 percent year-on-year to 776.7 billion won (US$541.8 million). This performance marks the company's highest-ever first-quarter earnings, driven by a rise in demand for high-value components.
According to Yonhap News Agency, sales for the January-March period rose 6.4 percent year-on-year, reaching a new first-quarter high of 14.75 trillion won. The company's net profit also climbed 19.6 percent to 1.03 trillion won on a consolidated basis, as reported in a regulatory filing. These earnings surpassed market expectations, with analysts having estimated a net profit of 999.1 billion won, based on a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company's improved performance was attributed to increased demand for high-value electronics and core components in its module and electrification business, which reported 11.47 trillion won in sales. Additionally, the aftersales parts segment contributed 3.28 trillion won in sales, marking an 11.8 percent increase year-on-year.
Hyundai Mobis credited the spike in operating profit to the expansion of supplies for advanced components such as infotainment, advanced driver assistance systems (ADAS), and electrification. The company also reported overseas orders totaling $2.08 billion for the three-month period, achieving nearly 30 percent of its annual order target of $7.44 billion.
To enhance its competitiveness, Hyundai Mobis plans to invest over 2 trillion won in research and development this year, supported by a global research workforce of approximately 7,700 personnel. The company aims to strengthen overseas sales and focus on innovation to mitigate the potential impact of the United States' impending 25 percent tariff on auto parts, which is set to be implemented next month.