Hyundai Mobis Co., the auto parts arm of Hyundai Motor Group, said Friday its first-quarter operating profit surged 43.1 percent on-year to 776.7 billion won ($541.8 million), marking its highest-ever first-quarter performance, thanks to a rise in demand for high-value components.
Sales for the January–March period rose 6.4 percent on-year to also reach a new first-quarter high of 14.75 trillion won, while net profit climbed 19.6 percent to 1.03 trillion won on a consolidated basis, the company said in a regulatory filing.
The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 999.1 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The improved performance was driven by rising demand for high-value electronics and core components in the company's module and electrification business, which reported 11.47 trillion won in sales. The company's aftersales parts segment also contributed 3.28 trillion won in sales, up 11.8 percent on-year.
Hyundai Mobis attributed the spike in its operating profit to an expansion of supplies of advanced components involving infotainment, advanced driver assistance systems and electrification.
The company also reported a total of $2.08 billion in overseas orders for the three-month period, achieving nearly 30 percent of its annual order target of $7.44 billion.
To further enhance its competitiveness, Hyundai Mobis said it plans to invest over 2 trillion won in research and development this year. It currently employs a global research workforce of approximately 7,700 personnel.
The company added that it will strengthen overseas sales and innovation to mitigate the potential impact of the United States' 25 percent tariff on auto parts, set to take effect next month. (Yonhap)
