Hyundai Mobis Q3 OP up 43%, building 5 new plants in US to respond to IRA

Hyundai Mobis Co., car parts making unit under Hyundai Motor Group, celebrated its best third quarter sales, buoyed by strong performance by sister Hyundai and Kia carmakers and growing outside orders.

The company in its regulatory filing on Friday said its consolidated operating profit for the quarter ended September reached 576 billion won ($469.2 million), up 42.8 percent from a quarter ago and 25.9 percent from a year earlier.

Net profit lost 27.3 percent on quarter but gained 4.6 percent on year to 559.9 billion won, while sales added 7.1 percent from three months ago and 31.9 percent against a year earlier.

The figures were above the market consensus of 576.1 billion won in profit and 12.48 trillion won in sales.

Hyundai Mobis shares were trading 7.11 percent higher at 218,500 won in Seoul trading at 11:13 a.m. Friday.

“Global chip shortages have been eased in part to increase output of finished cars. Production of EVs rose sharply,” said an official from Hyundai Mobis.

The module and key parts division delivered 10.6 trillion won in revenue in the third quarter, adding 37.3 percent on year. Revenue from electric components surged 62.7 percent to record-high 2.49 trillion won on brisk sales of power conversion system and battery system.

The follow-up service division generated 2.58 trillion won in sales, up 13.7 percent on demand growth from major overseas markets like North America and Europe.

Hyundai Mobis up to September this year has added $3.33 billion worth orders from global finished carmakers apart from Hyundai Motor and Kia, achieving 90 percent of its full-year sales target of $3.74 billion worth.

Starting from chassis module supplies to Mercedes-Benz, the company has been accelerating its global outreach by diversifying its client portfolio to global premium brands.

To respond to the electrification demand in North America and new legislation in the U.S. requiring EV sourcing from the region to become eligible for tax credit, Hyundai Mobis is building five new manufacturing bases in the U.S.

Three for PE modules and battery system will be added to Hyundai Motor Group Metaplant America (HMGMA), the auto conglomerate’s new EV-dedicated plant to be built in Savannah, Georgia. The other two will be built in nearby Alabama and Georgia plants.

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