JMI doubles operating profit on U.S. auto interiors growth, lifts 2024 outlook
By Google News Motors ·
JMI more than doubled its operating profit through the third quarter this year from a year earlier, powered by growth in its U.S. automotive interior parts business.
On the 9th, JMI said its cumulative consolidated operating profit through the third quarter came to 5.8 billion won, up 107.4% from the same period last year. Revenue for the period rose 57.4% to 99.3 billion won, and net profit jumped 158.8% to 4.5 billion won.
Looking only at the third quarter (July–September), revenue was 37.5 billion won and operating profit was 3 billion won. Those figures were up 71.8% and 117.2%, respectively, from a year earlier.
The improvement was driven by the automotive interior parts business centered in the United States. Cumulative revenue for that unit through the third quarter reached 44.9 billion won, surging 214.7% on-year. Operating profit rose 131.3% to 2.2 billion won.
JMI said investments made last year have begun to pay off and profitability improved as the domestic household goods business stabilized. Given the growth of the automotive interior parts business, it projected full-year revenue will top the original target of 117.5 billion won.
Alongside the stronger results, the company is also moving to streamline its capital structure to boost shareholder returns. At an extraordinary shareholders meeting in September, JMI decided to reduce legal reserves and additional paid-in capital to offset accumulated losses. It said the move is meant to secure funds that can be used for dividends when profits are generated.
The company also approved a 5-for-1 reverse stock split, raising the par value from 1,000 won to 5,000 won. The move aims to resolve the so-called "penny stock" issue for shares trading below 1,000 won, and the new shares from the split are scheduled to be listed on the 10th.
Back in May, it canceled 740,014 treasury shares, equal to 2.27% of the total number of shares issued. The book value of the canceled shares was about 2 billion won. Related parties, including the CEO, have also been buying company shares on the open market.
A JMI official said, "Companywide profitability is improving as we expand the domestic household goods business and the U.S.-based automotive interior parts business," adding, "On that basis, we will improve our capital structure and pursue shareholder returns policies to raise both corporate value and shareholder value."
Originally published by Google News Motors
