Seoul: Hyundai Rotem Co., a subsidiary of Hyundai Motor Group specializing in train manufacturing, announced an 88 percent increase in its net profit for the second quarter compared to the previous year. The surge is attributed to a rise in exports and a robust order backlog.
According to Yonhap News Agency, Hyundai Rotem's net profit for the April-June period was 189.5 billion won (US$136.4 million), a significant increase from the 100.8 billion won reported a year earlier. This marks the largest quarterly net profit in the company's history. Additionally, the company reported a record operating profit of 257.6 billion won, a 128.4 percent increase from last year, with sales rising 29.5 percent to 1.41 trillion won.
The operating profit exceeded the average estimate by 3.6 percent, based on a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. However, the estimate for net profit was not available. A representative from Hyundai Rotem credited the surge in earnings to increased export activities, which significantly enhanced profitability.
The company's order backlog reached a record high of 21.64 trillion won by the end of June, showing a 2.4 percent increase from three months prior. Notable contracts include a 1.4 trillion-won agreement for maintaining commuter trains on South Korea's Daejang-Hongdae line and a 420 billion-won metro project in Taichung, Taiwan.
In the defense sector, the company recently signed a $6.5 billion second-phase contract for Poland's K2 tank program, which will be reflected in the third-quarter earnings, as stated by the company official.