Hyundai’s Purchase of Doosan Infracore Pays Off After 2 Years of Profits

It appears that Hyundai’s purchase in 2021 of Doosan Infracore – whose construction brand is now known as Develon – has paid off, thanks to increased operating profits over the past two years.

HD Hyundai Infracore, which encompasses the former Doosan Infracore, posted financial results October 25 that showed an operating profit of 20% year over year. The company’s name was changed to HD Hyundai Infracore in March. The chart below shows the new names for the company and related businesses:

HD HyundaiThe South Korea-based news site Pulse reports that since the purchase of Doosan’s construction equipment and engine division, HD Hyundai Infracore’s operating profit has exceeded its purchase price. According to Pulse, HD Hyundai Infracore’s total operating profit since its acquisition is 774.1 billion Korean won. The news site reports that Hyundai ultimately paid 690.8 billion won to acquire Doosan Infracore.

HD Hyundai Infracore’s total profit since acquisition has reached 83.3 billion won over purchase price, which translates into about $61.6 million.

In its third-quarter financial report, HD Hyundai Infracore attributes part of its 20% annual increase in profitability to steady growth in North American infrastructure investment.

It has also seen growth due to urban redevelopment in Europe and expansion of engine sales. Sales in developed markets rose 12% year over year.