Accra:Hyundai Rotem Co., the defense and railway arm of Hyundai Motor Group, announced a 10.3 percent decrease in its net profit for the third quarter compared to the same period last year.
According to Yonhap News Agency, the company's net profit for the July-September period fell to 177.98 billion won (approximately US$133.9 million). Operating profit also saw a decline, dropping 11 percent year-on-year to 247.1 billion won, while sales showed a marginal increase of 0.1 percent, reaching 1.62 trillion won.
For the first nine months of this year, Hyundai Rotem's cumulative sales increased by 11.2 percent year-on-year to 4.68 trillion won, despite a 4.7 percent drop in operating profit, which amounted to 703.7 billion won. The company's order backlog was reported at 29.14 trillion won at the end of September, marking a decrease of 1.26 trillion won from the previous quarter.
In a strategic move, Hyundai Rotem plans to acquire the defense business of Hyundai Wia Co. for 358.4 billion won. This acquisition is aimed at enhancing its weapons production capabilities and is anticipated to support the growth of overseas sales for its K2 tanks.