(LEAD) Hyundai Mobis Q2 net rises 17 pct on EV parts

All News 16:36 July 24, 2019

(ATTN: ADDS photo and details in paras 4-6, last 4 paras)

SEOUL, July 24 (Yonhap) -- Hyundai Mobis Co., South Korea's biggest auto parts maker, on Wednesday reported a 17 percent rise in its second-quarter net profit on strong sales of EV components.

Net profit for the April-June quarter rose to 645 billion won (US$550 million) from 553 billion won a year earlier, the company said in a statement.

"A sharply increased supply of high-end components for electric vehicles at home and abroad gave a boost to the quarterly results. A weaker won (against the dollar) also buoyed the bottom line," a company spokesman said.

In recent years, demand for electric car parts has been on the rise as carmakers, including Hyundai Motor Group, are in a race to strengthen their lineups with more competitive electric car models.

Hyundai Motor Group has added electric versions of the Kona subcompact sport-utility vehicle, the Ioniq, the Niro, and Soul boxcar to its lineup.

Hyundai Mobis received a total of 659.6 billion won worth of electric car parts orders globally in the second quarter, jumping 82 percent from 362 billion won a year earlier, it said.

Operating profit also climbed 18 percent to 627 billion won over the cited period. Sales were up 6.5 percent to 9.46 trillion won from 8.88 trillion won, the statement said.

From January to June, net income increased 11 percent to 1.13 trillion won from 1.02 trillion won in the year-ago period. First-half operating profit grew 14 percent to 1.12 trillion won from 981 billion won, while sales were up 6.6 percent to 18.2 trillion won from 17.07 trillion won, it said.

Hyundai Mobis won $845 million worth of core auto parts orders from global carmakers, except its parent Hyundai Motor Group, in the first half, achieving 40 percent of its annual order target of $2.1 billion, the spokesman said.

The company earns 90 percent of its overall auto parts sales from Hyundai Motor Co. and Kia Motors Corp.

Last year, Hyundai Mobis obtained $1.7 billion worth of parts orders, or 10 percent of its total car parts deals, outside the country.