Hanon Systems Releases Second-Quarter 2024 Results

• Record-breaking sales of approximately KRW 2.56 trillion despite the slowdown in the electric vehicle market
• Aiming for improved performance in the second half through thermal management solutions applicable to all vehicle types, including internal combustion engine, hybrid and electric vehicles

SEOUL, South Korea, Aug. 8, 2024 /PRNewswire/ -- Hanon Systems (KS: 018880), a leading global automotive thermal management supplier for electrified mobility, today announced consolidated sales of KRW 2.56 trillion for the second-quarter of 2024, achieving the highest quarterly and historical sales record. This represents an increase of approximately 5.4% compared to the same period last year.

Operating profit for the second quarter was KRW 71.6 billion, a 9.6% increase from the previous quarter, marking a consistent rise in operating profit for three consecutive quarters. However, the 50% decrease in operating profit compared to the same period last year is attributed to temporary factors, including the high base effect from strong previous-year performance and the global slowdown in electric vehicle sales.

For the first half of the year, sales reached KRW 4.9645 trillion, approaching the total half-year sales of KRW 5 trillion. Despite the global decline in electric vehicle production due to the slowdown in electric vehicle sales, the company's annual sales for 2024 are expected to show growth compared to the previous year, reaching approximately KRW 10 trillion.

Hanon Systems plans to leverage its competitive advantage by diversifying its product development strategy to focus on not only EVs, but also hybrids and internal combustion engine vehicles, in line with the future strategic changes of its customers. The company expects that the expansion of its traditionally strong internal combustion engine vehicle products and the use of key electrification components, such as electric compressors, in hybrid vehicle thermal management systems will positively impact profitability.

Co-CEO Subu Nagasubramony said Hanon Systems is swiftly responding to strategic direction changes from our customers. "We are aiming for improved performance in the second half of the year with our thermal management solutions technology, capable of addressing all vehicle types, including internal combustion engines, hybrids, and electric vehicles."

About Hanon Systems

Hanon Systems is a full-line supplier of automotive thermal and energy management solutions for electrified and conventional vehicles. Its offering includes a wide range of solutions in the areas of heating ventilation and air conditioning; powertrain cooling; compressor; fluid transport; and electronics and fluid pressure. The company currently operates 50 manufacturing sites and three regional innovation centers, and employs more than 20,000 people across 21 countries. To learn more, visit hanonsystems.com.

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SOURCE Hanon Systems