Hyundai Elevator Reports First Quarterly Loss Since 1996

Hyundai Elevator Co., South Korea’s No. 1 elevator producer, announced in August a quarterly operating loss for the first time since it was listed on the main bourse Korea Composite Stock Price Index (KOSPI) in 1996, The Korea Economic Daily reports. The elevator maker posted KRW11.5 billion (US$8.6 million) of operating loss in the second quarter of 2022 on a consolidated basis, according to Korea’s Financial Supervisory Service on Thursday. The company saw a quarterly operating loss due to soaring raw materials prices, such as cast iron, steel plate (which nearly doubled) and guide rails, and sluggish demand from China and other overseas markets. The firm logged negative KRW42.1 billion (US$31.5 million) in cash flow from operating activities (CFO) in the second quarter, posting negative CFOs for two quarters in a row. Hyundai Elevator’s share price has nearly halved since last September. Last month, the elevator maker moved its headquarters to Chungju, in Korea’s North Chungcheong Province. At the time, the firm said it will increase annual sales from KRW2 trillion (US$1.5 billion) in 2021 to KRW5 trillion (US$3.7 billion) by 2030 and increase overseas sales to 50% of total revenue from the current 20% to 50% by then, targeting emerging markets. The firm’s earnings could improve as it raised elevator prices on two occasions this year, a Hyundai Elevator official said.