Hyundai Construction Equipment's net profit soars in Q1 on overseas demand

Hyundai Construction Equipment Co. posted a net profit of 59.4 billion won in the first quarter compared, up nearly 60-fold from the 1.2 billion won a year ago.

The company sold 3,179 excavators valued at 964.9 billion won, increasing 51.6 percent from the 1,331 units a year ago.

Hyundai Construction's operating profit went up over seven times from 10.7 billion won a year ago to 79.7 billion won.

The better-than-expected performance was attributed to robust overseas demand, global economic stimulus plans, and higher raw material prices, such as iron ore, which drove up demand for excavators.

The company attributed its highest quarterly performance since 2017 when it was set up to the sharp rise in sales of construction equipment in emerging markets, including China and India.

Hyundai Construction sold 1,549 excavators in India in the first quarter, increasing by 40 percent from the 1,106 units sold in the previous year.

There was also increased demand for construction equipment in North America and Europe.