The Korea Herald


Hyundai Mobis Q3 net jumps 78% on sales growth of key components

By Yonhap

Published : Oct. 27, 2023 - 11:14

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(Hyundai Mobis) (Hyundai Mobis)

Hyundai Mobis Co., South Korea's leading auto parts maker, said Friday its third-quarter net income jumped more than 70 percent on-year thanks to robust sales of its high-end auto components.

Consolidated net profit came to 998.1 billion won ($736.8 billion) during the July-September period, up 78.3 percent from a year earlier, the company said in a regulatory filing.

Sales grew 7 percent on-year to 14.23 trillion won, while operating profit jumped 19.8 percent to 690.2 billion won.

The earnings beat market expectations. The average estimate of net profit by analysts was 843.5 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Hyundai Mobis, part of Hyundai Motor Group, attributed its stronger on-year performance to an increase in the supply of high-end components, including module and core parts, used in vehicle production and the stabilization of logistics costs.

The company's module and core parts division logged an 8.1 percent on-year growth in sales. Its electrification component business in particular grew 9.3 percent in sales from last year.

Sales from the supply of components used for after-sales customer service also saw 2.7 percent growth thanks to increased global demand. Hyundai said operating profit in the division grew 11.9 percent thanks to the stabilization of logistics fees.

Hyundai Mobis earns about 90 percent of its sales from Hyundai Motor and Kia, with 10 percent coming from other carmakers.

The company said it was consistently increasing the volume of its orders from major clients, including Volkswagen, Mercedes-Benz, GM and Stellantis. (Yonhap)