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Sunday, June 23, 2024

Hyundai Mobis reports record revenue in 2022, lower-than-expected net profit

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Hyundai Mobis President Cho Sung-hwan speaks about the company's vision during the CES 2023, which held in Las Vegas earlier in the month [HYUNDAI MOBIS]
Hyundai Mobis President Cho Sung-hwan speaks about the company’s vision during the CES 2023, which held in Las Vegas earlier in the month [HYUNDAI MOBIS]

Hyundai Mobis reported lower-than-expected net profit in 2022, impacted by the rising raw material costs.

The auto parts maker logged a net profit of 2.5 trillion won ($2 billion) last year, up 5.3 percent on year, falling slightly short of the market consensus of 2.7 trillion won compiled by FnGuide.

Annual revenue came in at an all-time high of 51.9 trillion won, up 24.5 percent on year, beating the market expectation of 50.4 trillion won. It is the first time the company surpassed 50 trillion won in annual revenue.

Operating profit dropped 0.7 percent to 2 trillion won in line with analyst expectations.

“Despite the rising costs, we saw remarkable growth in the modules and components business as the volume of vehicle production recovered and there were increased orders for electric vehicles (EV) parts,” Hyundai Mobis said in a statement.

Sales of modules and core auto parts were up 25.3 percent to 41.7 trillion won. Of them, sales of EV components stood at 9.7 trillion won, a record high.

Hyundai Mobis has been focusing on strengthening close cooperative relationships with various foreign companies in a bid to secure new technologies for future mobility.

The auto parts maker announced it would cooperate with Qualcomm to develop a controller for level 3 autonomous vehicles during CES 2023 held in Las Vegas earlier this month.

It also teamed up with Ottopia, an Israeli start-up, to jointly develop a teleoperation system for level 4 autonomous vehicles or higher.

BY SARAH CHEA [chea.sarah@joongang.co.kr]