Hyosung's Q3 operating profit rises 43%...Hyosung Heavy Industries' order backlog nears 19 trillion won

[Financial News] Hyosung, the holding company of Hyosung Group, posted a 43.8% year-on-year increase in operating profit in the third quarter of this year, aided by improved performance at key subsidiaries. Hyosung Heavy Industries' order backlog reached a record 18.9 trillion won, buoyed by expanded orders for power equipment in the United States. Hyosung TNC's operating profit also nearly doubled, while Hyosung Chemical remained in the red.
According to third-quarter business results released by Hyosung on the 30th, the holding company's consolidated revenue rose 14.2% from the same period last year to 699.3 billion won. Operating profit increased 43.8% to 175.3 billion won. The operating margin rose 5.2 percentage points, from 19.9% in the third quarter last year to 25.1% this year.
Equity-method earnings rose 33.9% year on year to 80.6 billion won, reflecting improved performance at key subsidiaries including Hyosung Heavy Industries. Consolidated subsidiary Hyosung TNS Inc. also posted revenue of 398.7 billion won and operating profit of 70.1 billion won, aided by expanded sales in new markets. Those figures were up 6.0% and 28.2%, respectively, from the same period last year.
Among the key subsidiaries, Hyosung Heavy Industries posted third-quarter revenue of 1.7406 trillion won and operating profit of 243.5 billion won. The figures were up 7.2% and 10.8%, respectively, from the same period last year.
In the heavy industries division, logistics disruptions caused by the situation in the Middle East and typhoons in the United States delayed the recognition of some revenue. Profitability in the construction division weakened as higher costs at some sites were reflected.
New orders, however, rose sharply. Hyosung Heavy Industries' new orders totaled 3.2331 trillion won in the third quarter, up 122% year on year. Its order backlog consequently climbed 71% from the same period last year to 18.9 trillion won, setting a new record.
Orders are expanding particularly in the U.S. market, led by ultra-high-voltage transformers. Hyosung Heavy Industries recently signed contracts worth about 380 billion won to supply ultra-high-voltage transformers to two U.S. big tech companies.
Hyosung TNC also posted improved results. Third-quarter revenue rose 6.1% year on year to 2.1331 trillion won. Operating profit increased 96.4% to 110.2 billion won. The company plans to continue improving profitability by expanding sales of high-value-added products and strengthening its cost competitiveness.
Hyosung Chemical remained in the red. Third-quarter revenue rose 26.4% year on year to 733.6 billion won, but the company posted an operating loss of 19.5 billion won. The loss narrowed from 26.1 billion won in the same period last year, but the company swung back to a loss compared with its operating profit of 170.8 billion won in the second quarter of this year.
In the polypropylene (PP) and propane dehydrogenation (PDH) divisions, profitability worsened as higher logistics costs drove up production costs and selling prices fell. The Polyketone (POK) division, however, widened its profit on increased sales for automotive and service-robot parts, while the Optical division remained profitable through manufacturing cost reductions.

[email protected] Kim Mi-hee Reporter