Hyundai Mobis, the auto parts affiliate of Hyundai Motor Group, posted resilient earnings for the first quarter of this year, navigating headwinds from weakening global demand and war in the Middle East.
According to the company’s earnings report on Friday, from January to March, its operating profit and sales revenue rose 3.3 percent and 5.5 percent year-on-year to 802.6 billion won ($540.9 million) and 15.56 trillion won, respectively.
Hyundai Mobis said its performance was driven by rising orders from nonaffiliated global automakers, along with expanded shipments of high-value automotive electronics. Favorable exchange rates also boosted its after-sales parts business.
However, its module and core components manufacturing division — currently undergoing large-scale investment for future growth — recorded a 4.9 percent increase in revenue but has continued to post operating losses.
The company said profitability was weighed down by slowing global demand and initial costs related to its Slovakia-based Power Electric system plant — which began mass production of key EV powertrain components in the first quarter — as well as the upcoming Battery System Assembly plant in Spain.
A Hyundai Mobis official stated, “Despite challenging business conditions, we plan to invest more than 2 trillion won in R&D for the first time this year to strengthen competitiveness in future mobility markets, while also pursuing measures to boost profitability.”
Meanwhile, under its mid- to long-term shareholder return policy announced last year, Hyundai Mobis plans to buy back and cancel 500 billion won worth of treasury shares this year. It also aims to maintain its dividend at last year’s level of 6,500 won per share, subject to board approval.
hyejin2@heraldcorp.com
