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Hanon Systems Rallies Solely among Major Auto Parts Suppliers

May 17, 2017 18:32|May 17, 2017 18:32
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HanonSystems, a specialist in the manufacturing of automotive heaters andair-conditioners, enjoyed more than a 20-percent growth in its operating profitfor the first quarter of this year.

HanonSystems' strong performance is drawing keen attention in a situation where theperformance of other Korean auto parts suppliers are hit by the sluggishperformance of Hyundai Motor and Kia Motors.

HanonSystems announced on May 15 that it posted sales of 1.44 trillion won andoperating profit of 127.1 billion won for the first quarter. Year on year,sales increased 1.5 percent and operating profit 21.3 percent.

Thisperformance is seen by many as unexpected and a rare earnings surprise,particularly given that the profits of other major auto parts suppliers fell by20-30 percent due to the decline in sales of Hyundai Motor and Kia Motors dueto China's THAAD retaliation.

Keyfactors behind the strong results of Hanon Systems include its market diversificationmoves. Its sales stem from various markets, including Korea (27%), Europe (31%),North America (16%), and China (16%).