Synopsis
HD Hyundai Electric announced a 10.9% decline in Q4 net profit due to one-off costs, despite a significant increase in operating profit and sales for the year 2024.Key Takeaways
- Fourth-quarter net profit fell by 10.9%.
- Operating profit increased by 33.4%.
- Total net income for 2024 rose 90.8%.
- Company plans to invest 396.8 billion won in production facilities.
- Targeting $3.82 billion in orders for the current year.
Seoul, Jan 20 (NationPress) HD Hyundai Electric, a prominent manufacturer of electrical equipment based in South Korea, announced on Monday that its net profit for the fourth quarter dropped by 10.9 percent year-over-year, attributed to one-off expenses.
The net profit for the quarter ending December 31 decreased to 123.9 billion won (approximately $85 million), down from 139 billion won in the same period last year, according to a regulatory filing reported by Yonhap news agency.
A spokesperson for the company stated, "In the fourth quarter of the previous year, one-off costs, unrelated to regular operations, impacted our bottom line." Further details regarding these costs were not disclosed.
Meanwhile, operating profit surged by 33.4 percent, reaching 166.3 billion won in the December quarter, up from 124.7 billion won a year prior. Sales also increased by 2.3 percent to 815.7 billion won, compared to 797.3 billion won during the corresponding timeframe.
The company indicated that the rise in quarterly operating profit was significantly bolstered by an uptick in transformer orders from the United States, which is ramping up investments in electrical infrastructure and data centers.
For the entire year of 2024, net income skyrocketed by 90.8 percent to 495.1 billion won, compared to 259.5 billion won from the previous year.
Operating profit more than doubled to 669 billion won, up from 315.2 billion won in the cited timeframe, with sales surging 22.9 percent year-on-year to 3.32 trillion won, compared to 2.70 trillion won.
In 2024, the company secured orders worth $3.81 billion, surpassing its target of $3.74 billion.
For the current year, the aim is to achieve $3.82 billion in orders and 3.89 trillion won in sales.
To proactively address the growing demand for its ultra-high pressure transformers, the company plans to invest 396.8 billion won in its manufacturing facilities, allocating 211.8 billion won to its local plant in Ulsan, located 305 kilometers southeast of Seoul, and 185 billion won to its facility in Alabama, USA, as noted in the release.
Additionally, the company operates another domestic facility that produces medium-low pressure circuit breakers.
