Net profit eased 1 per cent to 1.91 trillion won ($1.77 billion) in January-March from 1.93 trillion
Hyundai Motor posted its fifth consecutive drop in quarterly profit after weaker overseas currencies put a drag on offshore revenue
Seoul: Hyundai Motor on Thursday posted its fifth consecutive drop in quarterly profit after South Korea’s biggest automaker boosted sales incentives in the US and weaker overseas currencies put a drag on offshore revenue. Hyundai Motor, which together with affiliate Kia Motors ranks fifth in global sales, said net profit eased 1 per cent to 1.91 trillion won ($1.77 billion) in January-March from 1.93 trillion won a year earlier.
Another drop in profit will add to pressure on Hyundai to boost production of sport utility vehicles (SUVs) and trucks to capitalise on surging demand in the US and China. “We expect earnings to improve going forwards,” Hyundai said in a statement, citing the planned rollouts of its Tucson SUV overseas. Hyundai and Kia raised their 2014 vehicle sales target late last year even as demand for their mainstay sedans stalled, bloating inventories and forcing incentives higher.
At the same time, the South Korean won strengthened against currencies in Russia, Brazil and Europe, eroding overseas earnings. More than 85 per cent of Hyundai’s vehicle sales are booked outside its home turf. It’s operating profit slid 18 per cent to 1.59 trillion won, on revenue of 20.94 trillion won, down from 21.65 trillion a year earlier. Its shares were up 1.5 per cent.
( Source : reuters )
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