Hyundai Glovis posts record-high quarterly sales on strong ocean shipping biz

(Hyundai Glovis)

Hyundai Glovis posted its highest-ever quarterly revenue and operating profit in the April–June period, fueled by a surge in its ocean car shipping business, the company announced Thursday.

Consolidated revenue for the second quarter came to 7.52 trillion won ($5.42 billion), up 6.4 percent from a year earlier. Operating profit rose 22.7 percent to 538.9 billion won, with an operating margin of 7.2 percent. Net profit jumped 60.5 percent on-year to 502.6 billion won.

By business segment, logistics posted revenue of 2.59 trillion won and operating profit of 203.3 billion won, driven by growth in overseas inland transportation. The ocean shipping division, the standout performer, delivered 1.36 trillion won in revenue and 200.2 billion won in operating profit — a 155 percent increase from the previous year. Distribution revenue reached 3.57 trillion won, with an operating profit of 135.4 billion won, helped by higher auto parts volume.

Industry observers say Hyundai Glovis’s efforts to expand its customer base beyond Hyundai Motor Group played a key role. The proportion of ocean shipping sales from non-affiliated automakers rose from 45 percent in the second quarter last year to about 54 percent this year.

Analysts said that Glovis’s strategy of expanding its owned fleet while reducing chartered vessels has improved profitability. By relying less on expensive chartered ships and more on its own fleet, the company achieved more cost-efficient operations.