Hyundai Mobis Q3 net income jumps 78.3 percent on year

Hyundai Mobis [YONHAP]

Hyundai Mobis, Korea's leading auto parts maker affiliated with Hyundai Motor, said Friday its third quarter net income jumped more than 70 percent on year thanks to the robust sales of its high-end auto components.

The third quarter profit came to 998.1 billion won ($745 million) during the July-September period, up 78.3 percent from a year earlier, the company said in a regulatory filing.

Its sales logged 14.23 trillion won, the company's highest third quarter figure, which is a 7 percent year-on-year jump.

Operating profit jumped 19.8 percent to 690.2 billion won.

Earnings beat market expectations. The average estimate of net profit by analysts was 843.5 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

The parts maker attributed its stronger on-year performance to an increase in the supply of high-end components, including module and core parts, used in vehicle production and the stabilization of logistics costs.

The company's module and core parts division logged an 8.1 percent on-year growth in sales. Its electrification component business in particular grew 9.3 percent in sales compared to the same period last year.

Sales from the supply of components used for after-sales customer service also saw 2.7 percent growth due to increased global demand. Hyundai said operating profit in the division grew 11.9 percent due to the stabilization of logistics fees.

Hyundai Mobis earns about 90 percent of its sales from Hyundai Motor and Kia, with the remainder coming from other carmakers.

The company said it was consistently increasing the volume of its orders from major clients other than Hyundai Motor affiliates, including Volkswagen, Mercedes-Benz, GM and Stellantis.

BY JIN EUN-SOO, YONHAP [jin.eunsoo@joongang.co.kr]