Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
HD Hyundai Electric hits record sales on US transformer demand
HD Hyundai Electric's Alabama subsidiary in the United States / Courtesy of HD Hyundi Electric
By Park Jae-hyuk
Transformer maker set to pass tariff costs to US customers
HD Hyundai Electric announced Tuesday that its first-quarter revenue rose 26.7 percent year-on-year to 1.1 trillion won ($776 million), while its operating profit soared 69.4 percent to 218.2 billion won.
It marks the first time the transformer and switchgear manufacturer's quarterly revenue has surpassed 1 trillion won.
The company's strong performance is largely attributed to rising electricity demand in the United States, driven by the need to replace outdated equipment and build infrastructure to support artificial intelligence.
In the North American market alone, HD Hyundai Electric posted 388.9 billion won in first-quarter sales, up 74.7 percent from 222.6 billion won a year earlier.
"We anticipate continued orders in North America again this year," a company official said during a conference call. "Deferred revenue from power transformer projects in the previous quarter was reflected, contributing to rapid sales growth in the region."
U.S. President Donald Trump's energy policies were also cited as a boost for the company.
HD Hyundai Electric said Trump's declaration of a national energy emergency is expected to lead to the development of various power sources and the integration of standby power through the national grid.
Washington's plan to impose sanctions on Chinese-built vessels was noted as another favorable factor, given that demand for HD Hyundai Electric's marine rotating machines and other ship-related products is expected to rise, with global shipping firms increasingly turning to Korean shipyards.
The company acknowledged ongoing uncertainty in the global trade environment. However, it downplayed the potential impact of U.S. tariffs on its business.
"We have begun negotiations with customers in the Americas, and they have responded positively to price increases, which should help us offset the tariff risks," the company official said. "Our Alabama subsidiary is less exposed to tariffs and is expected to maintain stable profitability due to price hikes."
HD Hyundai Electric added that it plans to accelerate its expansion in Europe and Asia by leveraging its domestic and overseas production facilities.