(ATTN: ADDS plans to enhance shareholder value in last 3 paras)
SEOUL, April 26 (Yonhap) -- Hyundai Mobis Co., South Korea's biggest auto parts maker, said Friday its first-quarter net profit rose 4.3 percent on increased sales of components for sport utility and electric vehicles.
Net profit for the January-March quarter rose to 486 billion won (US$418 million) from 466 billion won a year earlier, the company said in a statement.
"Increased sales of modules and core components to large SUVs and all-electric and other environment-friendly vehicles buoyed the quarterly results," a company spokeswoman said.
Hyundai Mobis heavily relies on orders from its affiliates Hyundai Motor Co. and Kia Motors Corp.
The parts maker earns 90 percent of its overall sales by supplying auto parts to Hyundai and Kia, which together form the world's fifth-biggest carmaker by sales.
In 2019, Hyundai Motor aims to win $2.1 billion worth of orders from carmakers mainly in the United States, Europe, Japan and China. This is up 28 percent from the $1.7 billion it achieved last year.
Operating profit climbed 9.8 percent to 494 billion won in the first quarter from 450 billion won a year ago. Sales were up 6.6 percent to 8.74 trillion won from 8.19 trillion won during the same period, it said.
To enhance shareholder value, Hyundai Mobis plans to implement a share buyback totaling 330 billion won in the second half of the year and cancel 63 billion won worth stocks, the statement said.
In addition, the company will cancel 2 million treasury stocks out of its existing 2.6 million treasury stocks at the end of April. It will deliver 1,000 won per share to shareholders in interim dividends at the end of June, it said.
All the plans are part of the company's broader aim to boost share prices and improve shareholders' interests through share buyback, share cancellation and dividend payments amounting to a total 2.6 trillion won for the three years from 2019, the statement said.
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