Seoul: HD Hyundai Electric Co., a South Korean electrical equipment manufacturer, has announced a 10.9 percent decrease in its fourth-quarter net profit, attributing the decline to non-operational one-off costs. The company's net profit for the quarter ending December 31 fell to 123.9 billion won (approximately US$85 million) from 139 billion won in the same period the previous year, as detailed in a regulatory filing.

According to Yonhap News Agency, the company spokesperson explained over the phone that these one-off expenses were not related to its core operations, although further details on the costs were not disclosed. Despite the drop in net profit, HD Hyundai Electric saw its operating profit rise substantially by 33.4 percent to 166.3 billion won, up from 124.7 billion won the previous year. Sales also experienced a modest increase of 2.3 percent, reaching 815.7 billion won from 797.3 billion won.

The surge in quarterly operating profit was primarily driven by heightened transformer orders in the United States, where investments in electrical infrastructure and data centers have been on the rise, the company noted in a press release. For the entirety of 2024, HD Hyundai Electric reported a significant 90.8 percent increase in net income, totaling 495.1 billion won compared to 259.5 billion won the previous year.

Additionally, the company's operating profit more than doubled, reaching 669 billion won from 315.2 billion won, with sales climbing 22.9 percent year-on-year to 3.32 trillion won from 2.70 trillion won. In 2024, HD Hyundai Electric secured $3.81 billion worth of orders, surpassing its target of $3.74 billion. Looking ahead, the company aims to achieve $3.82 billion in orders and 3.89 trillion won in sales for the current year.

To proactively address the growing demand for ultra-high pressure transformers, HD Hyundai Electric plans to invest a total of 396.8 billion won in its production facilities. This investment includes 211.8 billion won for its domestic plant in Ulsan and 185 billion won for its U.S. plant in Alabama. Additionally, the company operates another domestic plant dedicated to manufacturing medium-low pressure circuit breakers.