Operating profit falls 10.6% on tariffs, investment costs

Net profit for the period surges 189.8%

Hyundai Wia headquarters [Hyundai Wia]
Hyundai Wia headquarters [Hyundai Wia]

Hyundai Wia reported Friday that its second-quarter sales rose 8 percent year-on-year to 2.35 trillion won ($1.6 billion).

By business segment, the vehicle parts division posted sales of 2.18 trillion won, while other segments recorded 173.9 billion won — up 8.6 percent and 1.6 percent, respectively, from the same period a year earlier.

The company attributed the sales growth to higher domestic vehicle production volumes and expanded sales of modules and drivetrain components.

Second-quarter operating profit fell 10.6 percent to 50.4 billion won. Hyundai Wia said the decline reflected the impact of US tariffs and investment costs tied to the mass production of thermal management components and hybrid engines.

Net profit for the period surged 189.8 percent to 75.1 billion won.

Hyundai Wia said it is strengthening its foundation for future growth, focusing on thermal management systems, defense and mobility solutions. For the second half of the year, the company expects its Mexican subsidiary to begin full-scale hybrid engine production, with continued sales growth in drivetrain and thermal management components.


eyre@heraldcorp.com