- Last year, sales reached KRW 9,373.4 billion, operating income amounted to 1,186.6 billion, and net income totaled KRW 1,090 billion - Intense and far-reaching business innovations in logistics, production, and R and D yield cost reductions that result in higher net profits - Improving business performance to turn global crisis into opportunity… propelling core technology development for future vehicles
Last year, the global economic recession did not keep Hyundai Mobis from breaking the KRW 1 trillion mark in net income and continuing its impressive business performance.
On the 2nd, Hyundai Mobis revealed through the Financial Supervisory Service (FSS) electronic corporate filing system and #8212;FSS DART and #8212;that the company achieved KRW 9,373.4 trillion in sales, KRW 1,186.6 in operating income, KRW 1,255.5 billion in ordinary income, and KRW 1,090 billion in net income in 2008. They reflect year-on-year increases of 10.4%, 43.9%, 19.8%, 40.3%, respectively.
Last year, Hyundai Mobis was able to join the club of KRW 1 trillion in net profit for the first time in its history when the module business generated KRW 6,174.2 trillion and the parts business recorded another 3,199.2 trillion in sales.
An official of Hyundai Mobis said, “The release of new models last year helped to raise the demand for the latest modules and core parts, while growth in the number of Hyundai and Kia cars on the roads created more demand for A/S products. Also, increase in auto parts exports to new emerging markets that Hyundai has advanced into contributed to more sales.”
The official also added that, “Business innovation that Hyundai Mobis pursued intensely last year was largely responsible for the company’s ability to push profits up and break the KRW 1 trillion mark,” and stressed that, “just last year alone, Hyundai Mobis was able to save KRW 70 billion in costs through application of common parts at the design stage, enhancements in productivity coming from manufacturing process improvements, and introduction of innovative changes in logistics with integrated shipping and better loading efficiency.”
Apart from sales at home, Hyundai Mobis’ overseas subsidiaries also generated USD 6.066 billion in sales in 2008. That is a 21.4% growth compared to the previous year. An official of Hyundai Mobis said, “Although sales came down slightly in the US due to the economic slowdown, the sale of Hyundai and Kia strategic models picked up in Europe and China, pushing up sales of modules and core parts.”
Experts are particularly impressed with Hyundai Mobis’ unexpectedly good results and advancement into the “KRW 1 trillion in sales club” as they come at a time when businesses are reeling under the worldwide financial turmoil.
Under the current climate, Hyundai Mobis is poised to turn the current global crisis into an opportunity by devoting more resources to the development of core technologies for future vehicles and fast forwarding its plans to become a global auto parts producer with cutting-edge technology.
Therefore, Hyundai Mobis will be fully dedicated to the development of future vehicle core technologies, such as hybrid electric vehicle core parts, chassis integration, auto electronics, and state-of-the-art sensor technologies, while steadily strengthening its competitiveness through continued cost reductions through business innovation.
In January, Hyundai Mobis announced its major business plan involving KRW 12 trillion in total sales both at home and abroad and KRW 200 billion in investment in R&D.