Seoul: Hyundai Rotem Co., the defense and train subsidiary of Hyundai Motor Group, reported record high quarterly earnings in the third quarter, driven by impressive exports and substantial order backlogs. Hyundai Rotem's net profit for the July-September period reached 198.4 billion won (US$139 million) on a consolidated basis, marking a significant 91.2 percent increase from the previous year, as disclosed in a regulatory filing.
According to Yonhap News Agency, the company's operating income was recorded at 277.7 billion won, which represents a 102.1 percent increase from the previous year. Sales also climbed by 48.1 percent, reaching 1.61 trillion won. Both operating profit and sales figures set new quarterly records for Hyundai Rotem.
The operating profit exceeded the average estimate by 3.5 percent, as indicated by a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency. However, an estimate for net profit was not available. A Hyundai Rotem official explained that the robust performance was largely due to increased production and deliveries for export orders, especially within its defense division.
The company's order backlog reached an unprecedented level of 29.6 trillion won as of the end of September, reflecting a 36.8 percent increase from the previous quarter. The defense division's order backlog surpassed 10 trillion won for the first time, buoyed by a $6.5 billion agreement signed in August with Poland's arms agency for the second phase of K2 tank exports.
Hyundai Rotem's railway division also demonstrated strong performance, maintaining an order backlog of 18 trillion won, according to the company.